While promising to allocate the cost of the San Bruno pipeline explosion between Pacific Gas & Electric’s ratepayers and shareholders at some later date, California Public Utilities Commission members advocated September 23 that the utility pay for new regulatory requirements with shareholder funds. “I urge PG&E to step up and say shareholder funds will be used for this effort,” said commissioner Dian Grueneich. Regulators this week required PG&E to review its spending on gas pipeline safety in 10 days; complete a leak survey on its gas pipelines by October 12; and “immediately” submit a safety inspection plan to the commission. In addition, regulators are set to appoint a panel of “experts” to review safety issues. There is no spending cap on the commission’s requirements. “To date, PG&E showed every willingness to cooperate” with regulatory orders, noted Mike Peevey, commission president. A September 9 explosion in San Bruno killed seven people and destroyed 37 homes. According to federal investigators, six people remain missing. It is under investigation by the National Transportation Safety Board, but is widely considered to be caused by natural gas ignition in a PG&E-owned pipeline. What was left of the pipe looked like a “canned sardine,” commissioner Nancy Ryan said of her first-hand look. Peevey noted a strain between outside consumer advocate The Utility Reform Network and the commission’s action. After TURN executive Mark Toney said to commissioners the agency should look into “What did PG&E know and when did they know it?” Peevey called the organization on his carpet. Peevey said that TURN had complete access to PG&E documents in gas pipeline safety cases. He added that the non-profit has been paid “tens of thousands of dollars” for its role in pipeline safety cases. “I’m a little concerned about TURN’s insensitivity at this moment,” Peevey added. In a separate CPUC move this week, regulators moved around some accounting in order to keep the California Solar Initiative funded. That initiative subsidizes distributed generation through solar photovoltaic rooftop installations. The decision shifts $40 million from utility administrative expenses to actual solar incentives. The transfer would increase the incentive budget to $1.747 billion. A measure to increase lighting energy efficiency by up to 80 percent by 2020 also was approved by regulators. “It’s the first [attempt] of its kind in the nation,” said Grueneich. The lighting recommendation is now a part of the long-term strategic plan.
