Regulators Eye Lighter Penalty Over California Utility’s Missing Records

California regulators proposed a minimum penalty of $3 million for shoddy record-keeping at the utility whose gas pipeline rupture caused the death of eight people in San Bruno last September.

As the Associated Press reports, the California Public Utilities Commission, or the PUC, had previously indicated that the company, Pacific Gas & Electric, could be liable for as much as $1 million per day for missing key safety records, much of it covering work performed more than a half-century ago.

However, the regulators reached an agreement with the company to back away from the higher penalty, and the PUC unanimously approved a motion ordering PG&E to appear at a Monday hearing regarding the punishment. The regulatory body could approve the fine as soon as April 14.

The missing records largely dealt with pressure tests that would have been performed on pipelines installed prior to 1961. Regulators had ordered PG&E to provide detailed engineering records soon after the accident but the company said it couldn’t locate the documents. The missing records involved 8 percent of the utility’s lines running through populated areas.

Paul Clanon, chief executive of the PUC,  justified the lighter penalty deal — whose penalties could rise to $6 million, if further problems come up with the company — on the grounds that it brought the issue to an orderly conclusion. “This is a very public and enforceable way to get this information,” Clanon said. “We don’t want to spend months in litigation.”

However, critics were unhappy with the secretive nature of the deal.

“This type of dealing erodes my faith in the public and transparent process the commission had promised,” Calif. Assemblyman Jerry Hill, D-San Mateo, said in a statement. “The PUC’s decision looks to be premature — especially when records remain unavailable for hundreds of miles of pipeline that could ignite another explosion. The PUC should wait until the end of the administrative process before agreeing to a fine amount.”

A PG&E spokesman said that his company would pay the first installment of the $3 million penalty within 10 days of its finalization by the PUC.

Related Posts:
Owner of Exploded California Pipeline Missing Safety Records
Utility Rejected Fixing Ill-Fated San Bruno Pipeline in Early 1990s
Flaws Behind San Bruno Explosion Not an Isolated Issue, Regulator Says

Print Print  

Like what we're doing? We'd appreciate your support.

Leave a comment