Blog Post / Energy & Environmental Law Blog
Pipeline Explosion Results in Commission Levying Highest Fine on a California Utility in History
12.01.11
The CPUC issued a $38 million fine on PG&E for the Rancho Cordova pipeline explosion and fire that killed a man. Commissioner Simon had extremely harsh words for PG&E for failing to comply with its own safety protocols in providing an introduction to his proposed fine. Commissioner Ferron piled on even more harshly by pointing out the horrifying and tragic litany of errors that occurred and resulted in the tragic explosion. His comments are best summarized in his own words: "the lack of safety culture at PG&E must change."
Unanimous vote in favor of this fine. Administrative Law Judge actually rejected the settlement made by the Commission's Consumer Protection and Safety Division with PG&E and issued an even larger fine.
The fine for the San Bruno pipeline explosion will likely be much, much higher.
Final decision will be issued shortly, but here is the proposed order.