State Commission Jolts PG&E
San Francisco, CA — The California Public Utilities Commission (CPUC) Thursday zapped Pacific Gas and Electric Company (PG&E) with its largest penalty ever ordered.
The California Public Utilities Commission has voted to penalize PG&E $1.6 billion for the 2010 San Bruno natural gas pipeline explosion that killed eight people. CPUC President Michael Picker says, “PG&E failed to uphold the public’s trust. The CPUC failed to keep vigilant,” said President Picker. “Our decision commits a significant portion of the shareholder-funded penalty – one of the biggest utility sanctions in U.S. history – to making PG&E’s gas transmission system as safe as possible for the public, consumers, utility workers, and the environment.”
Here is the commission’s breakdown what PG&E will pay:
- $850 million in gas transmission pipeline safety infrastructure improvements.
- $300 million in a fine to the state’s General Fund.
- $400 million in a one-time bill credit spread across PG&E’s gas customers.
- $50 million towards other remedies to enhance pipeline safety.
The decision requires that shareholders and not PG&E customers pay the penalty. To view the decision in its entirety click here.