PG&E to pay $97.5M in penalty over deadly blast

SAN FRANCISCO (AP) — California utility regulators have fined Pacific Gas and Electric Co. $97.5 million over improper back-channel communications with their own agency following a deadly natural gas pipeline explosion.

The San Francisco Chronicle reports the California Public Utilities Commission on Thursday unanimously approved the penalty that will require PG&E to pay $6 million each to the cities of San Bruno and San Carlos, and $12 million to the state’s general fund.

PG&E will also forgo $63.5 million in revenue it would otherwise have collected from its customers in 2018 and 2019 and another $10 million the next time the commission sets the PG&E’s rates.

The commission already fined the company $1.6 billion over the Sept. 9, 2010 explosion of a PG&E natural gas pipeline beneath San Bruno that killed eight people.

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Information from: San Francisco Chronicle, http://www.sfgate.com