Calif. agency: Utility should pay $2.25B fine for deadly 2010 San Francisco-area gas explosion

By Garance Burke | The Associated Press
May 06 2013 01:50 PM

CP23216806 — File - In this Sept. 9, 2010 file photo, a massive fire roars through a mostly residential neighborhood in San Bruno, Calif. The California agency investigating a deadly pipeline explosion and the City of San Bruno are set to propose major fines they say Pacific Gas & Electric Co. should pay for its negligence leading up to the blast. The City of San Bruno says the utility\'s shareholders should pay no less than .25 billion for violations regulators say PG&E committed before the 2010 explosion. (AP Photo/Paul Sakuma, File)

SAN FRANCISCO – The California agency investigating the deadly 2010 gas pipeline explosion in a San Francisco Bay Area neighbourhood says Pacific Gas & Electric Co. should pay a $2.25 billion fine for its negligence leading up to the blast.

Officials say the penalty would be the largest ever assessed by a state regulator.

The California Public Utilities Commission recommended the fine Monday and said the company’s shareholders should shoulder it.

The blast in San Bruno sparked a fireball that killed eight people, injured dozens and destroyed 38 homes.

Commission investigators and consumer advocates filed a range of proposals for fines Monday. PG&E will file its proposal later this month.

A judge from the utilities commission is expected to make a final decision about how much to fine PG&E later this year.

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