PG&E says penalties for its 2010 pipeline explosion could push it to the brink of bankruptcy

|About: PG&E Corporation (PCG)|By:, SA News Editor

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.