PG&E: Shareholders Will Pay For Pipeline Explosion Penalties, Not Customers

SAN FRANCISCO (CBS/AP) — Officials at Pacific Gas & Electric say customers will not be paying the massive fines being sought by state regulators in the deadly 2010 pipeline explosion in San Bruno, but that PG&E’s shareholders will bear that cost.

On Friday the utility said it thought the record $2.25 billion in fines being sought by state regulators is illegally excessive, but did not offer a specific dollar figure it considers reasonable.

In a 103-page filing submitted just before the close of business, PG&E said that it agrees with the California Public Utilities Commission’s finding that a financial penalty is appropriate for the September 2010 explosion that killed eight people.

But with shareholders already paying $2.2 billion in system upgrades and other improvements in response to the blast, a spokesman on Saturday said that amount should be applied to any penalty.

(Copyright 2013 by CBS San Francisco. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed.)

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