City, PG&E to Resume Compensation Talks After Impasse

Updated at 3:26 p.m.

Mayor Jim Ruane said today that PG&E has been stalling negotiations to settle millions of dollars in restitution owed to the city for the 2010 pipeline explosion in the Crestmoor neighborhood. 

The city has been in talks with PG&E for several months to provide additional compensation for the huge emotional damage left by the disaster, which left eight people dead, 38 homes destroyed and another 70 damaged. The settlement would be in addition to the to pay for restoring the city infrastructure damaged by the explosion. PG&E also in the days after the fire to specifically help the residents affected by the disaster.

“We believe the utility owes our community restitution to right the wrong they have done to our city, our community and our future,” Ruane said at a news conference at City Hall. 

The city has been trying to come to an agreement about what it feels is an appropriate amount for the damages not covered already by PG&E, Ruane said.  

“Now it seems they want to walk away by doing the minimum required under the law,” he said. 

Ruane didn’t disclose the amount of compensation the city is seeking. But he said possible ideas for how the restitution could be used include:

• Establishing an endowment of scholarships for the children of the fire survivors;
• Making a contribution to the youth sports leagues throughout the city;
• Providing additional counseling services;
• Continuing support to local nonprofits; and
• Investing in large capital projects for the city, such as improvement to the library or a memorial park in the neighborhood where the explosion happened. 

To get beyond the impasse, Ruane called upon PG&E to return to the bargaining table in good faith with the city. He also said that as an alternate path to get restitution the city has filed a petition to the California Public Utilities Commission to become part of its for the deadly pipeline explosion. 

In a slight twist, after reporters questioned the city’s motives for announcing the impasse to the ongoing confidential negotiations, Ruane said he was told this morning that PG&E officials have agreed to sit down with the city on Friday to talk about the restitution. 

Greg Pruett, a PG&E senior vice president, said the company had already planned to set up another meeting with the city before the news conference was held.

"We indicated that we would be reaching out to the city this week to set up another meeting to further discuss and hopefully arrive at a resolution which the city feels will address its concerns and, more importantly, address the needs of all the residents and further the healing process," Pruett said on a call after the news conference with reporters from throughout the country.

Later in the day, PG&E released a statement saying the utility and city leaders shared the same goal of achieving a positive resolution for both the city and the residents.

"As we have said all along, our pledge is to do the right thing, in every area of our response, to help the city and its residents recover from this terrible tragedy," the company said. "That pledge is as unwavering as ever, and we are hopeful we can work in a timely manner with San Bruno officials to reach a successful resolution."

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