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San Bruno calls for $3.85 billion fine for PG&E in legal probe of deadly blast

SAN BRUNO, California — San Bruno city officials on Friday called on California regulators to fine Pacific Gas & Electric Co. $3.85 billion for the company's role in a deadly pipeline blast in 2010.

The city's lawyers filed the brief in response to the California Public Utilities Commission's recommendation that PG&E be fined $2.25 billion.

San Bruno officials said the CPUC's terms allow the company to deduct the entire penalty from its taxes, which lets the utility "off the hook."

"PG&E should be forced to pay the maximum for its systematic safety failures that caused the 2010 explosion and fire, which took the lives of eight citizens of our city, injured countless more, destroyed 38 homes, and left a hole in the heart of San Bruno," San Bruno Mayor Jim Ruane said in a statement.

In an earlier legal filing, PG&E called the fine excessive and said its shareholders have already paid more than $2 billion in system upgrades.

Four CPUC attorneys leading the probe quit the case earlier this week, with one saying he disagreed with managers handling of the case.

San Bruno's legal filing said the $3.85 billion is the maximum fine the CPUC can levy against the company, and should be instituted with no credit for past expenses.

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