Is $1.4 Billion Enough Punishment for Deadly Natural Gas Explosion?

With a final decision expected later this year, the California Public Utilities Commission recommended a $1.4 billion fine for PG&E in connection with violations leading to a natural gas explosion in 2010.

1 minute read

September 6, 2014, 9:00 AM PDT

By James Brasuell @CasualBrasuell


"State regulators on Tuesday proposed a $1.4 billion fine to punish PG&E for its role in a fatal natural gas explosion in San Bruno -- but the fines are far less than the $2.25 billion recommended by regulatory staff and consumer groups," reports George Avalos.

Two administrative law judges with the state Public Utilities Commission (PUC) recommended the fine. If finalized, the fine would be the largest safety related penalty ever issued by the PUC.

The PUC's Office of Ratepayer Advocates pushed for a much larger fine of $2.25 billion. If there is any indication that the lower penalty was good news for PG&E, the market provided one: "Shares of PG&E soared 3.5 percent soon after word spread of the proposed decision and spiked an intra-day high of $47.78 in late-session trades. PG&E closed at $47.29 on Tuesday, up 1.7 percent."

As for the negligence that precipitated the explosion in San Bruno, which killed eight people and destroyed 38 homes, "San Francisco-based PG&E committed about 3,800 violations of state and federal laws and regulations in connection with its natural gas operations, and because the infractions stretched back a period of years, the utility was in violation for a total of 18.4 million days, the proposed decision determined."

Friday, September 5, 2014 in San Jose Mercury News

portrait of professional woman

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching. Mary G., Urban Planner

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching.

Mary G., Urban Planner

Use Code 25for25 at checkout for 25% off an annual plan!

Redlining map of Oakland and Berkeley.

Rethinking Redlining

For decades we have blamed 100-year-old maps for the patterns of spatial racial inequity that persist in American cities today. An esteemed researcher says: we’ve got it all wrong.

May 15, 2025 - Alan Mallach

Logo for Planetizen Federal Action Tracker with black and white image of U.S. Capitol with water ripple overlay.

Planetizen Federal Action Tracker

A weekly monitor of how Trump’s orders and actions are impacting planners and planning in America.

May 14, 2025 - Diana Ionescu

Front of Walmart store with sign.

Walmart Announces Nationwide EV Charging Network

The company plans to install electric car chargers at most of its stores by 2030.

May 7, 2025 - Inc.

Regeneration of contaminated industrial land used for waste dumping, West Midlands, UK, 2006 .

EPA Awards $267 Million to Clean Up and Reuse Contaminated Sites

The EPA is investing the funds to clean up and redevelop contaminated sites nationwide, supporting economic growth, community revitalization, and environmental restoration.

May 18 - Environmental Protection

Archway made of bikes in Knoxville, Tennessee over Tennessee River.

Knoxville Dedicates $1M to New Greenway

The proposed greenway would run along North Broadway and connect to 125 miles of existing trails.

May 18 - WATE

25mph speed limit sign with digital "Your Speed" sign below it.

Philadelphia Launches ‘Speed Slots’ Traffic Calming Pilot

The project focuses on a 1.4-mile stretch of Lincoln Drive where cars frequently drive above the posted speed limit.

May 18 - WHYY