SAN FRANCISCO May 6 The California Public
Utilities Commission is considering fining utility PG&E Corp
$2.25 billion over the deadly 2010 San Bruno gas line
rupture and fire, requiring the utility to spend the entire fine
The Commission's staff recommended the record fine against
PG&E's Pacific Gas and Electric. It would be the largest fine
ever imposed by state pipeline regulators in the United States,
the California Public Utilities Commission said on Monday in a
In response, PG&E CEO Tony Earley said on Monday in a
statement that the proposal reflected a desire to punish his
company, ignoring what it had done in the fire's aftermath. The
fine would make it more costly to finance remaining safety
A natural gas pipeline explosion in the city just south of
San Francisco destroyed a neighborhood and killed eight people
on Sept. 9, 2010. The National Transportation Safety Board later
blamed the utility's lax approach to pipeline safety and weak
oversight by state and federal regulators.
PG&E already has spent more than $1 billion on safety, which
would be counted toward paying the fine, the regulator said.
PG&E may now respond to the Commission. A decision is
expected in late summer, the regulator said.