PG&E Corp. CEO Steps Down in Wake of Pipeline Explosion

PG&E Corp. CEO Peter Darbee said Thursday he is stepping down from his post at the end of the month following a "challenging year" that included the Sept. 9 gas pipeline explosion and fire in the Crestmoor neighborhood, according to media reports.

Darbee, 58, chairman and CEO of Pacific Gas & Electric Co.'s parent company, will retire April 30, just as the utility faces federal and state investigations into the Crestmoor explosion. That blast which left eight people dead, 38 homes destroyed and the lives of the entire neighborhood forever changed. PG&E appointed Lee Cox as interim chairman.

"Peter concluded that a change in leadership would create the best opportunity for PG&E to move ahead after a challenging year," Cox told the Sacramento Bee.

PG&E spokesman Hertzog clarified today that despite media reports suggesting Darbee was offered about $35 million to leave, the CEO earned all money he will receive.

"He is entitled to pension benefits that he has earned during his tenure here," he said.

Hertzog said the search for a permanent chairman should take several weeks and that no other changes in company management have been planned.

Several state officials and agencies have expressed approval of Darbee's resignation.

"While obviously the company under his leadership has been responsible for several poor and consequential decisions, Mr. Darbee's commitment to PG&E and its constituents is unquestioned," Michael Peevey, president of the California Public Utilities Commission, said in a statement.

"The news that Peter Darbee is stepping down provides an opportunity for PG&E to begin rebuilding its reputation as a corporation that values its commitment to customer service and safety as much it does its profits," Assemblyman Jerry Hill, D-San Mateo, said in a statement. "Growing up in the Bay Area, I always had a great deal of respect for this company. But since the tragedy in San Bruno, I and other PG&E customers have been alarmed by a series of disclosures that  point to a company culture that encouraged cutting corners and side-stepping regulators to maximize profits."

Since the pipeline explosion, politicians and members of the public have accused PG&E management of poor pipeline maintenance and of concealing information about what equipment is being used to power the homes of customers.

"Thursday's announcement is a good start, but the company still has a long way to go to regain the public's trust," Hill said.

Bay City News Service contributed to this story.