Politics & Government

Hill Calls CPUC Fine Against PG&E 'Backroom' Deal

The CPUC said today it could fine PG&E up to $6 million for being out of compliance with its order to produce adequate pipeline records about how the utility set its operating pressures.

The California Public Utilities Commission today decided it could fine PG&E up to $6 million for failing to provide documentation justifying pressure levels in the utility's gas transmission lines.

At its hearing in San Francisco, the commission unanimously agreed to immediately fine the utility $3 million for being out of compliance with a records order that asked Pacific Gas & Electric Co. officials to prove maximum pressure was properly set on the utility’s gas transmission lines.

The utility has come under intense scrutiny since the Sept. 9 gas pipeline explosion and fire in the Crestmoor neighborhood because of its practices in operating its pipelines, including frequently boosting gas levels to their maximum levels, which was done twice over a five-year period on Line 132, the gas transmission line that ruptured near Earl Avenue and Glenview Drive and left eight people dead and 38 homes destroyed.

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PG&E could avoid paying the other $3 million of the total fine if the utility provides all the information requested about its older pipes to the CPUC by Aug. 31. The utility has agreed to release records monthly to commissioners until the end of August to remain in compliance with the CPUC.

In a statement made following the CPUC’s meeting, state Assemblyman Jerry Hill, D-San Mateo, blasted the CPUC’s announcement, calling it a “backroom” deal made between the commission and PG&E outside of the public’s view.

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After PG&E about its pipelines last week, CPUC executive director Paul Clanon called the utility’s efforts “willful noncompliance” and said PG&E would likely for violating a January directive to produce adequate pipeline records.

Pressure test records for Line 132, which was installed in 1956—before rules were set on pressure testing pipelines—have still not been identified, PG&E has admitted.

“Only a week ago, the PUC was threatening to issue fines exceeding $1 million a day for what it called PG&E’s ‘willful noncompliance’ to turn over the records,” Hill said in the statement. “Now, I’ve learned that PG&E and PUC officials met privately and agreed upon a fine. This type of dealing erodes my faith in the public and transparent process the Commission had promised.”

Hill also said PG&E needs to testify under oath about their inability to provide records necessary to determine pipeline pressures before the CPUC determines how much to fine the utility.

CPUC spokeswoman Terrie Prosper said the proposed fine against PG&E will be discussed Monday at a public hearing. 

Commissioners will then vote in April or May whether to approve the proposed fine or another amount, Prosper added.

“The goal of the proposed stipulated agreement was get a list of very specific enforceable milestones for PG&E to achieve in its records search, and to move PG&E quickly back to that work,” she said.

The evidentiary hearing on Monday will be held at 10am to discuss the stipulation.

An administrative law judge and two CPUC commissioners will be present.

Bay City News Service contributed to this story.


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