Regulators penalize PG&E $1.6 billion for pipeline blast

[Omaha Steve]

Source: AP-Excite

By ELLEN KNICKMEYER

SAN FRANCISCO (AP) — California Public Utilities Commission voted Thursday to penalize Pacific Gas & Electric Co. $1.6 billion for a deadly 2010 gas-pipeline.

The commission voted 4 to 0 on the penalty proposed last month by Commission President Michael Picker.

The fine is $200 million higher than one recommended by administrative law judges last year for PG&E, the state's largest power utility.

Picker's proposal would require PG&E shareholders to pay $850 million that would go toward gas transmission safety improvements. It also orders PG&E to pay a $300 million fine that would go into the state's general fund, and it mandates the utility pay $400 million in bill credit. It directs approximately $50 million toward other remedies.

FULL story at link.



FILE - In this Sept. 9, 2010, file photo, a massive fire following a pipeline explosion roars through a mostly residential neighborhood in San Bruno, Calif. Repeated natural-gas accidents including a pipeline explosion that killed eight people suggest that Pacific Gas & Electric Co., California{2019}s largest power utility, may be too big to operate safely, the state{2019}s top utility regulator says. California Public Utilities Commission President Michael Picker said he would ask the commission{2019}s staff to study {201c}the culture of safety{201d} and the structure of the utility, which he noted currently has its gas and electricity operations under a single board and CEO. PG&E is one of the country{2019}s largest power utilities with 9.7 million gas and electric customers. The Associated Press obtained Picker{2019}s prepared statement ahead of a commission meeting Thursday, April 9, 2015, where the panel is expected to vote on a record $1.6 billion penalty for the 2010 PG&E gas pipeline explosion in a San Francisco suburb. (AP Photo/Jeff Chiu, File)

Read more: http://apnews.excite.com/article/20150409/us--gas_pipeline_explosion-60c897ddd0.html

[LongTomH]

1. Reminds me of those old Superman comics where Supie says: "I almost felt that!"

I doubt that PG&E will be inconvenienced very much, even if the commission's decision isn't reversed by a court.

[christx30]

3. The cost of doing business.

What's a couple of deaths from time to time?
Yeah, these penalties need to be so bad that the people in charge fear them. If I got a $100 fine, it would make living darn near impossible. Penalties from preventable accidents with a great loss of life and property need to be like that.

[FiveGoodMen]

4. "so bad that the people in charge fear them"

Prison time.

Nothing else will get their attention.

[christx30]

5. I'd feel happy

with a manslaughter to whomever was in charge of the line. I read a few days ago (and, forgive me, I can't find the link) that the line was in need of safety upgrades, but the company took the funds the state had given them for those upgrades, and devoted them to pay raises for their executives. If this is true, then whomever made that decision should face jail time for his failure to protect his customers, and for stealing taxpayer money.

ETA Found the link: http://www.latimes.com/business/la-fi-puc-hearing-20150325-story.html

[tech3149]

2. Not even close to punitive from my POV

Damages need to be so painful that they will cripple persistent violators that put many at risk as opposed to those persistent violators that do little harm to others.

[tularetom]

6. Well, we can expect yet another rate increase behind this

I know it says the shareholders will be required to pay the fine, but you know the utility has some slimy lawyers figuring out how PG&E can claim the fine as a cost of doing business and pass it along to the ratepayers.

[Starry Messenger]

7. Paging the long-lost DUer who insisted 5 years ago that someone hit the pipe with a backhoe.

http://www.democraticunderground.com/discuss/duboard.php?az=show_mesg&forum=389&topic_id=9112174&mesg_id=9112540

Idiot. So glad to see this corporation finally get their punishment. Their arrogance in the wake of blowing up San Bruno has been fucking staggering.

[ut oh]

8. They really should

fine the executives and not allow them to write it off on their taxes... or put them in jail for endangering the public.

Fining the company does nothing... They count it as a financial loss and poof the tax payers pay for it, not them.