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Pacific Gas and Electric Company, Regulatory Violations, California 2016

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PG&E Sentenced for Regulatory Violations

San Francisco, CA – Pacific Gas and Electric Company (PG&E) was sentenced to submit to an expansive program of probation after being found guilty of multiple willful violations of the Natural Gas Pipeline Safety Act of 1968 and obstructing an agency proceeding.

The sentence, handed down by District Judge Thelton E. Henderson, includes a corporate compliance and ethics monitorship, 10,000 hours of community service, and a requirement to spend up to $3 million on public advertising to notify the public of the utility’s criminal and neglectful behavior.

The guilty verdict stems from a 5 ½ week trial in which a federal jury found PG&E guilty of six felony counts, including five willful violations of the PSA and one count of corruptly obstructing the federal investigation into the 2010 fatal pipeline explosion in San Bruno.

The evidence at trial demonstrated that, between 2007 and 2010, PG&E willfully failed to address recordkeeping deficiencies concerning its larger natural gas pipelines, knowing that its records were inaccurate or incomplete. The company also willfully failed to identify threats to its larger natural gas pipelines and to take appropriate actions to investigate the seriousness of threats to pipelines when they were identified.

“Today, the Pacific Gas and Electric Company was sentenced for its crimes after having been found guilty of violating federal regulations designed to keep our citizens safe and obstructing an agency proceeding,” said U.S. Attorney Brian J. Stretch.

PG&E was found guilty of obstructing an agency proceeding after investigators discovered the company attempted to mislead the National Transportation Safety Board (NTSB) during its investigation into the San Bruno explosion.

The sentence is a significant blow to the company, which has been at the center of controversy for its handling of pipeline safety and its response to the San Bruno explosion, which killed eight people and destroyed dozens of homes.

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