The penalties include $850m for gas transmission pipeline safety infrastructure improvements, $300m to the state’s General Fund; $400m in a one-time bill credit spread across PG&E’s gas customers and approximately $50m for other remedies to enhance pipeline safety.
The penalties and remedies exceed $2.2bn when added to the disallowances already adopted in a earlier CPUC decision. The penalty amount covers nearly 3,800 violations of state and federal laws and regulations cited by two commission administrative law judges, reports Reuters.
This is the largest ever penalty imposed by the five-member state Public Utilities Commission, eclipsing the $38m fine against PG&E for a natural gas explosion near Sacramento way back in 2008, says the agency.
The pipeline blast, which was caused by poor maintenance with faulty welding work, claimed lives of eight people in San Bruno, reports The Wall Street Journal.
CPUC president Michael 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.
"This landmark Decision provides redress for the systemic causes that led to the San Bruno tragedy and will improve gas pipeline safety for generations of Californians."
CPUC commissioner Carla Peterman said: "No decision can rectify the loss that the community of San Bruno suffered as a result of the gas transmission pipeline rupture, but I believe that our decision will enable us to focus going forward on making sure the system is the safest it can be."
The commission said that the PG&E shareholders will be responsible to pay the penalties and remedies and not the customers.
