City of San Bruno Slams PG&E’s Claims About Bankruptcy

PG&E Chairman and Chief Executive Officer Tony Earley made the claim on Bloomberg News last week.

The California Public Utilities Commission (CPUC) has proposed a fine and penalty of $2.25 billion.

“Mr. Earley’s comments are inconsistent with the company’s own sworn testimony made before the CPUC on March 5 this year,” said San Bruno Mayor Jim Ruane. “PG&E’s own expert said the company has the financial capability to withstand a penalty of this magnitude. We are deeply concerned that these comments could mislead the market, shareholders, and the public, and we hope these were not made in a deliberate attempt to influence the outcome of the ongoing penalty process.”

San Bruno officials are pushing for a penalty of $3.8 billion, which would amount to $2.45 billion in after-tax dollars. This penalty would also fund ongoing safety improvements and give no credits for past expenses.

The CPUC’s five-member commission is expected to issue its final recommendation in coming months.

“As we approach the three-year anniversary of this devastating tragedy, we remain firm in our belief that the only way to prevent future accidents is by penalizing PG&E to the maximum,” Mayor Ruane said. “The independent experts – even PG&E’s – have agreed that PG&E is financially able to weather a penalty of this magnitude—and then some. We are now looking to the CPUC to do the right thing and penalize PG&E in order to send a strong message that public safety cannot be compromised by the bottom line.”

The 2010 explosion and fire killed 8 people, injured dozens, destroyed 38 homes and damaged another 100.

Also on Patch:

PG&E: New Disclosure of Faulty Gas Pipeline Welds, Records