CPUC PG&E Chicanery? California Commission Sudden Halt into PG&E Gas Pipeline Safety Raises Serious Questions, San Bruno Says

San Francisco, Calif. – The City of San Bruno today criticized a decision by the California Public Utilities Commission to halt its investigation into thousands of missing Pacific Gas & Electric Co. pipeline strength test records – a sudden and shocking reversal that’s prompted concerns of a possible backroom deal brokered between PG&E and the state agency tasked with regulating it.

 

The CPUC’s Safety Enforcement Division this week quietly halted its inquiry into the safety of 435 miles of gas pipelines across California after PG&E refused to turn the information over to regulators— causing speculation that PG&E may have applied outside pressure to compel the regulatory agency to end its investigation.

 

San Bruno officials are now calling upon the CPUC to immediately re-open the investigation to force PG&E to produce accurate strength test records for 23,761 segments of pipe covering more than 435 miles – records that PG&E explicitly told the CPUC it would produce by 2013.

 

State and federal investigators identified PG&E’s faulty recordkeeping as a leading cause of the fatal 2010 pipeline explosion and fire in San Bruno that killed eight, injured 66 and destroyed 38 homes.

 

“PG&E continues to play a lethal game with the lives of the public. We are deeply concerned by their persistent failure and unwillingness to produce accurate pipeline records, without which we cannot know whether our communities remain at risk for the same devastating and fatal explosion that we experienced in San Bruno,” said San Bruno Mayor Jim Ruane. “Yet even more troubling is the CPUC’s decision to not pursue an investigation of these missing records even after preparing a motion to do so.”

 

“We question the CPUC’s sudden decision this week and are concerned it may be the result of inappropriate pressure applied by PG&E at the expense, once again, of public safety,” Ruane said.

 

The CPUC’s latest inquiry came about as part of the ongoing penalty proceeding to determine how much PG&E will be forced to pay for its gross negligence that caused the fatal explosion and fire in San Bruno. The CPUC’s administrative law judges are now considering penalties and fines against PG&E of up to $2.45 billion.

 

Yet, following unsuccessful attempts to obtain missing strength test records for more than 435 miles of pipeline directly from PG&E, the CPUC’s safety and enforcement division submitted a motion on May 30 to re-open the penalty proceeding’s record for the sole purpose of forcing PG&E to produce the documents.

 

San Bruno strongly supported the CPUC’s motion and its inquiry of the missing records, which city officials say are critical to instilling the public’s confidence in the safety of PG&E’s embattled pipeline system. San Bruno filed its own motion officially supporting the safety enforcement division’s request to obtain the missing records.

 

City officials are now questioning the division’s sudden decision to withdraw the motion and suspend the inquiry – a decision the city can only speculate as resulting from outside attempts by PG&E and its proxies to influence the CPUC’s actions.

 

“We are concerned that this decision is just further evidence of the cozy relationships that continue to jeopardize the CPUC’s ability to objectively regulate PG&E,” Ruane said.

 

San Bruno officials say this latest incident further underscores the need for an Independent Monitor, who would serve as a vigilant third-party watchdog over both PG&E and the CPUC.

 

“Only an independent monitor – free of the CPUC’s conflicts of interest and cozy relationships with PG&E that have jeopardized pipeline safety – can help guarantee that PG&E maintains good records and ensure that the CPUC provides the adequate and consistent oversight needed to keep our communities safe so that what happened in San Bruno never happens again,” Ruane said.

 

Ironically, PG&E has been spending millions of dollars on advertising its new “culture of safety,” with advertisements that stress the utility’s gas pipeline safety improvements since the San Bruno explosion and fire.  Yet, Ruane said, the utility can’t back up their advertising with proof that what they are telling the public is true.

 

Also this week, PG&E revealed that the U.S. Federal Prosecutor’s office expects to file additional legal actions against the utility for its gross negligence in the San Bruno case.  In April, the federal government charged PG&E with 12 felony violations of federal safety laws.

 

Is there a dirty deal between CPUC Michael Peevey and PG&E Executives?

Is there a dirty deal between CPUC Michael Peevey and PG&E Executives?

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