PG&E taps Michigan woman with good safety history, eye for clean energy as new CEO

SAN FRANCISCO - Pacific, Gas & Electric announced the appointment of a new CEO on Wednesday, a woman who hails from Michigan and who supporters say has a good safety record and a drive to provide clean energy. 

Patricia K. “Patti” Poppe, who has a master's degree from Stanford University, will take the helm of the beleaguered utility from outgoing William "Bill" Smith on Jan. 4.

She will be leaving her current job as president and CEO of CMS Energy Corporation and its subsidiary, Consumers Energy Company, an investor-owned utility that provides electricity and natural gas to 6.7 million Michigan residents. She's held that job since 2016.

In a statement, Poppe said she was honored to take the job, which she also noted: "faces significant challenges." She said she was willing to put in the hard work in "earning back the community’s trust.”

PG&E has been beset with fines and criminal charges stemming from California's deadly and destructive wildfires.

On Tuesday, Sonoma County and several Northern California agencies sued PG&E over damage caused by the Kincade Fire that destroyed hundreds of homes. The California Department of Forestry and Fire Protection later determined that the blaze was ignited by a PG&E-owned transmission line.

And over the years, PG&E’s aging equipment has sparked several other major fires, including a 2018 wildfire that destroyed much of the town of Paradise and killed 85 people. The utility pleaded guilty in June to 84 felony counts of involuntary manslaughter — one death was ruled a suicide — and paid $25.5 billion in settlements to cover the losses from that and other recent power line-sparked catastrophes. The utility emerged from bankruptcy the same month. 

And so Poppe's safety record is one key factor that landed her the job, the utility emphasized.

In a statement, PG&E said under Poppe's leadership at her current company, safety incidents decreasing by 70% since 2008. Among her achievements: Consumers Energy was ranked No. 1 overall in the Midwest Large Segment for the 2019 Gas Residential Customer Satisfaction Study by JD Power & Associates, and in 2019, customers saved nearly $600,000 on their energy bills through energy efficiency programs, boosting total customer savings to $3.1 billion since 2009. 

Poppe was ranked by Institutional Investor magazine as second of 44 utility CEOs and third of 47 utility CEOs for 2020 and 2021, respectively.

Robert Flexon, chairman of PG&E Corporation’s board of directors, said in a statement that he is sure Poppe will be able to lead the utility "through its next chapter" because of her experience and leadership skills. 

“We all recognize that PG&E must continue to improve, adapt, and become more resilient to the changing climate," he said. "As the leader of Michigan’s largest utility, Patti has embraced technology and put the company on a course to achieving its ambitious clean energy goals while maintaining steady and safe performance, prioritizing customer service, and advancing workplace equity. We are delighted to welcome her to PG&E and look forward to working closely with her to meet the challenges ahead as we continue to enhance the company’s culture and improve its operations.”

While she was at CMS Energy and Consumers Energy, Poppe developed a broad coalition of support to develop clean energy plans to reduce emissions, eliminate coal, and increase renewable energy. She has led the push into renewables as part of the integrated resource planning for Consumers Energy, including a net-zero carbon target by 2040. 

Consumers Energy was noted in this year's Forbes Magazine as of the top 50 employers for diversity, as the top utility company in Michigan for diversity in 2019, as the recipient of a Gold Veteran-Friendly Employer distinction in 2018. 

Poppe also worked at General Motors for 15 years in various roles. 

Poppe holds bachelor’s and master’s degrees in industrial engineering from Purdue University, as well as a master’s degree in management from Stanford’s Graduate School of Business.