SENATOR LENO WANTS PG&E SHAREHOLDERS, NOT RATE PAYERS, TO PAY FOR SAN BRUNO TRAGEDY

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Inspectors from the U.S. Department of Transportation, California Public Utilities Commission and PG&E huddle over a portion of the 30-inch natural gas pipe that exploded in San Bruno last week, landing on a street 100 feet away.
Photo By Don Bartletti

A California legislator wants utility company shareholders, not customers, to pay costs when it’s shown negligence is to blame for an explosion or fire.

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Senator Mark Leno

State Sen. Mark Leno’s proposal comes days after a Pacific Gas & Electric natural gas pipeline exploded in a San Bruno neighborhood, destroying 37 homes.

The San Francisco Democrat says ratepayers should not be on the hook when it’s shown a utility failed to do its job to protect the public.

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The San Francisco Chronicle says Leno’s bill would prohibit a utility from seeking a rate increase to cover its uninsured costs from a catastrophe. Leno says requiring investors to pay would encourage the utilities to focus on maintenance and prevention.

See Related: PG&E SAN BRUNO EXPLOSION ARCHIVE

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