Spend Boasting

For the seventh year in a row, SDG&E exceeded the overall DBE percentage goals set by the California Public Utilities Commission (CPUC). We are proud that 36.1 percent of company purchases were with diverse businesses, representing more than $435 million.  DBE spend in 2012 was less than in 2011 primarily due to lower 2012 expenditures related to the successful completion of the Sunrise Powerlink, SDG&E’s largest capital project in company history, which alone recorded over $126 million in DBE spend, or 43.8 percent in 2012.”  [click to see entire repoort]

Above is direct a quote from a Sempra subsidiary corporation San Diego Gas and Electric’s (SDG&E) 2012 Annual Report & 2013 Annual Plan.  Take note of how reporting emphasizes total spend with diverse firms versus community improvement.  The critical component found among major corporate activity on supplier diversity is the omission on job placements and community economic enhancement.  Rarely are specific local communities are highlighted where rate payers benefit from job opportunities and/or local business benefits.  These reports feature the subtle improved reputation received from a higher percentage spend.

In most scenarios one follows the money, but in the case of supplier diversity programs when you follow the money it all leads away from the very service territories that these firms receive their revenue from, i.e. Compton CA.  For this corporation a large reserve of revenue goes toward investing significant infrastructure expansion Mexico, Chile, Peru and Argentina.