Under a brand new proposal to punish PG&E for failings that led to the deadly San Bruno explosion and fire, the state is now proposing a $300 million fine to go along with forcing the utility to spend nearly $2 billion to upgrade its natural gas system, with none of those costs passed on to customers. Before San Bruno officials objected, and key enforcement lawyers rebelled at what the agency’s brass intended, the plan was to impose a $2.25 billion penalty, with no fine, that would have given PG&E credit for work it had already performed, and, incredibly, provided $900 million in tax breaks.
Under the new proposal, shareholders—and not just customers—would have to share the pain for the utility’s mismanagement. Chronicle; Mercury News
