Utilities get passing grade on affirmative action.

L.A. COUNTY - Against a backdrop of anti-affirmative action sentiment, California's seven largest utilities received passing marks for their efforts to award contracts last year to minority-owned businesses throughout the state, according to a report by the Greenlining Institute.

Nevertheless, those marks may slip this year and in years to come, said Gelly Borromeo, publisher of Walnut-based Asian Entrepreneur Magazine. The utilities are facing more and more competition, and as they struggle to keep up, programs for awarding contracts to minority-owned businesses may lose priority, she said.

The California Public Utilities Commission adopted voluntary goals in 1987 for the utilities to award 15 percent of their contracts to minority-owned businesses, according to a report published by the Greenlining Institute. This is a San Francisco-based public policy and advocacy center that focuses on promoting profitable ventures between minority businesses and banks, insurance companies and utilities. The PUC established separate goals for contracts awarded to women-owned businesses.

Last year, the seven utilities awarded a total of $1.2 billion in contracts to women and minority-owned businesses, according to the report.

Meeting or topping goals

Four equaled or exceeded the 15 percent goal, while the other three came awfully close, within two percentage points, of meeting it, according to the report.

Pacific Bell topped the list with a 16.3-percent score, according to the report. GTE Corp. ranked at the bottom, with a still-respectable 13.0-percent performance.

Those ranked No. 2-6, in order, were Pacific Gas & Electric Co., 15.3 percent; San Diego Gas & Electric, 15.3 percent; AT&T, 15.0 percent; Southern California Gas Co., 14.2 percent, and Southern California Edison, 14.0 percent.

The report also singled out specific ethnic groups receiving contract awards. AT&T took the lead for awarding contracts to Asian Americans, while Edison was in last place. However, Edison topped the charts when it came to awarding contracts to Latinos, while PG&E was last.

Then again, PG&E easily came out in front for contracts awarded to African Americans, and GTE, last overall, was also last in this category.

Although last year's overall percentages looked promising, Borromeo said she thinks the percentages are going to be lower this year.

Last December the PUC voted to open the electric utility industry to more competition, she said. That will force Edison and other electric utilities to streamline operations.

As a result, she said, each department within the companies will be more concerned with bottom-line results than meeting affirmative action goals.

Also, utilities these days are leaning toward contracting with a few, large companies, rather than many small ones, Borromeo said. These large prime contractors are less likely than the utilities to adhere to affirmative action guidelines when awarding subcontracts.

But Frank Moran, president of the Latin Business Association, said the association is pleased the corporations cited in the study took a strong, committed position toward affirmative action by participating strongly in the PUC's goal program.