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California pipeline rupture: Utility ordered to pay penalty of $1.6 bn

  • Pacific Gas & Electric (PGE) Co. has been ordered to pay $1.6bn in penalties for unsafely operating its systems in wake of the California pipeline rupture, which killed eight people in 2010 in the US.

    Of the sum, $850mn is to be spent on improving “pipeline safety infrastructure”, the California public utilities commission said. Michael Picker, the commission president, said that the PGE “had failed to uphold the public's trust.”

    PGE chief executive Tony Earley said that since the explosion in San Bruno, the firm was dedicating itself to “re-earning the trust of customers.”

    Tagged as: Pacific Gas Electric, penalties, California pipeline rupture, Michael Picker, Tony Earley, San Bruno explosion, business news