Thursday, April 9, 2015
Utility to pay $1.6B after deadly California pipeline rupture
PG&E has been penalized $1.6 billion by the California Public Utilities Commission for the pipeline explosion in San Bruno in 2010. In the explosion, eight people were killed, while approximately fifty were injured. 37 houses were destroyed by the blast. The majority of the penalties collected from PG&E will reportedly go to "gas transmission pipeline safety infrastructure improvements".
This disaster was certainly horrible publicity for PG&E, as it was discovered that the pipelines in the surrounding area were in horrible shape and had been disregarded by PG&E. Funds that were intended to be used on the infrastructure of the pipeline were diverted to other programs.
Do you think this penalty was fair to PG&E? Should it have been stricter or more lenient?