PG&E needs to embrace digital technology as a way to engage their customers. This is important because it solves two problems.
First, demand for electricity is increasing and customers don't want more transmission lines to be built near their homes. PG&E can use the technology that SmartMeters provide in order to implement time of use programs that will incentivize customers to use less energy during periods of high demand.
Second, customers often have inefficient behavior that is causing an unstable grid. By partnering with Nest Learning Thermostat, PG&E can use technology to influence consumer behavior.
More details can be found in these slides.