PG&E Picking Contenders

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Utility Company Calls Its Review ‘Long Overdue’
SAN FRANCISCO–Pacific Gas & Electric is drawing up a list of California agencies it will invite to vie for its estimated $10 million ad account, and will start contacting shops by the end of the month, according to a spokesperson for the utility company.
PG&E, a unit of $15 billion utility company PG&E Corp., has hired Lee Anne Morgan of consultancy Lee Anne Morgan & Partners, New York, to assist with the review
[Adweek, Oct. 12].
“We are currently trying to establish our selection criteria,” said PG&E’s Leonard Anderson. The review will wrap up by the end of this year, he added.
Incumbent McCann-Erickson, San Francisco, which has handled the account for
21 years, will be invited to defend, according to Anderson. Sources said the agency will be excused from producing new creative work for the pitch, if it is required.
“We will do whatever we’re asked to do,” said McCann president Ron Benza. “It’s unfortunate that the business is in review, but we understand PG&E’s reasons.”
PG&E’s decision to put the account in play comes as the company is looking at all of its supplier relationships. “It is time for us to have an agency review because it is long overdue,” said Anderson. “Most companies the size of PG&E frequently conduct reviews of their [suppliers].”
With California’s utility industry “in transition” due to power deregulation, Anderson said PG&E has been motivated “to focus on its role as a supplier of energy, and make sure it is with the right agency to help [communicate its] message.”
McCann recently broke a new branding campaign for PG&E with the tagline “We deliver energy.” Sources said the campaign is the brainchild of PG&E chief executive officer Gordon Smith, who was “very involved” in its creation.
Anderson said Smith is one “of a number of people” at PG&E who are spearheading the agency review. Smith declined to comment on the review process.