A massive gas pipeline explosion in 2010 killed eight people in San Bruno, prompting California to contemplate splitting the utility up after numerous safety violations raise concerns about whether it's too big.
California’s top utility regulator says that Pacific Gas & Electric Co. may be too big to operate safely after a string of natural-gas accidents, including one that killed eight people when a pipeline exploded.
California Public Utilities Commission President Michael Picker said he is asking the staff to study the “culture of safety” and the utility’s structure that has the gas and electricity operations all under a single board and CEO, according to an Assocaited Press report.
PG&E is one of the largest utilities in the country, serving 9.7 million customers with gas and electricity.
Picker was scheduled to speak at the commission’s meeting later today, where the panel is likely to vote on imposing a $1.6 billion penalty on PG&E for the 2010 pipeline explosion in San Francisco.
PG&E argues that it has redoubled safety training, and top executives have been changed out to deal with the problems. A total of nine of 12 safety upgrades recommended by federal officials have been carried out, the utility’s spokesman Keith Stephens said according to the report.
Stephens added that since the 10 explosion, “we have worked hard to do the right thing for the victims, their families, and the community of San Bruno.” He said that the utility was “deeply sorry for this tragic event.”
But while PG&E insists it has its act together, Picker said he was concerned by rising numbers of state safety citations against PG&E, and the utility seems to be able to absorb financial penalties without much problem.
Although it’s not clear what the state could do about this problem, it’s possible that the commission could split the company’s gas and electric operations over concerns that the organization is just too large to be safe, according to the report.
