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Tuesday, Aug 20
PG&E says penalties for its 2010 pipeline explosion could push it to the brink of bankruptcy
- PG&E (PCG) says it may be pushed to the edge of bankruptcy if state regulators impose a proposed $2.25B penalty for the deadly 2010 San Bruno pipeline explosion.
- The penalty represents more than four times the company’s net income last year and is 15 years worth of earnings for the gas business.
- If approved, it will push the total price tag for the disaster north of $4B, including money already spent on pipeline upgrades and safety work.
- An earlier proposal would’ve given the company credit for money already spent on upgrades and safety work.
- However, last month the California Public Utilities Commission changed its recommendation and called for harsher penalties, including a $300M fine for violating safety rules.