Judge leans toward maximum sentence for PG&E’s pipeline blast
A federal judge says he is inclined to fine Pacific Gas & Electric Co. the maximum $3 million as well as require the utility to mention its criminal convictions in ads and conduct community service as part of its sentence in a criminal case stemming from a deadly natural gas explosion in the San Francisco Bay Area.
U.S. District Court Judge Thelton Henderson was scheduled to issue his sentence Monday, but pushed the decision back to consider comments by attorneys for the government and PG&E.
The 2010 blast of a PG&E natural gas pipeline sent a giant plume of fire into the air, killing eight people and destroying 38 homes in the city of San Bruno.
A jury convicted the company in August of five counts of pipeline safety violations, including failing to gather information to evaluate potential gas-line threats and deliberately not classifying a gas line as high risk. Prosecutors said the company deliberately misclassified pipelines so it wouldn’t have to subject them to appropriate testing, choosing a cheaper method to save money.
Jurors also convicted the utility of misleading investigators after the blast.
PG&E attorney Steve Bauer says the company is prepared to pay the $3 million fine and has agreed to a monitor to oversee its operations as part of any sentence. But he asked Henderson to set a time limit on the ads and link them to efforts to improve safety.
Prosecutors have pushed for the advertising requirements, saying that a $3-million fine alone would be a “drop in the bucket” for PG&E.
Victims of the explosion say they remain traumatized and want Henderson to issue a sentence that changes the company. Three blast victims spoke Monday during the sentencing hearing in San Francisco.
Sue Bullis said she lost her husband, son and mother-in-law in the blast and still suffers from anxiety and depression. She called on the judge to impose an independent monitor to oversee the utility.
“This was due to the negligence of a greedy company that put profits ahead of safety,” Bullis said. “It is my hope that with the proper checks and balances for PG&E, this kind of tragedy will never happen again.”
Julie Kane, PG&E chief ethics and compliance officer, told the court: “Our commitment to safety will never stop. We are profoundly sorry.”
The California Public Utilities Commission previously fined PG&E $1.6 billion and directed that shareholders rather than customers pay the record penalty.
