|Program Management Projects:
San Diego Gas & Electric
3,913 Employees (1996)
In 1996 San Diego Gas & Electric's Real Estate Operations group (REO) asked Program Management to perform a due diligence review of its portfolio and operations. Excluding thousands of easements, SDG&E's land and building portfolio consisted of approximately 590 owned and leased properties. Seventy of these properties had improvements, totaling 1.3 million GSF, which required active management (the Facility Portfolio).
PM's primary focus, based on opportunities to affect assets and cost, was the Facility Portfolio. A Facility Audit was performed, covering all significant structures except power plants, capturing 92% of total floor area. Space occupancy data (e.g. Polyline CAD take-offs) developed in the Audit was incorporated into the CAFM system being developed by REO. Similarly, audit information on facility cost became the basis for new REO databases.
PM also made observations on various areas of departmental organization and management, including activity-specific performance metrics and best practices, as well as outsourcing opportunities. PM's analysis revealed the occupancy cost of various office complexes and allowed for the direct comparison of facilities with different lease and ownership characteristics. This assignment also reviewed historic occupancy patterns, revealing a dramatic increase in SF per office employee over the past ten years.
Assisted by this study's findings and recommendations, the REO group realigned its organization, portfolio, and processes to support ENOVA's new and repositioned business operations. While corporate strategies cannot be completely defined until key external issues are decided, all business futures will require the real estate group to respond with greater flexibility, lower cost and improved cycle times.
In June of 1998, Enova Corporation, SDG&E's
parent company, and Pacific Enterprises completed their $6.2 billion merger creating
Sempra Energy, a new San Diego-based Fortune 500 energy services holding company with the
largest regulated utility customer base in the United States.
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