PG&E Fined $6.5M for Substation Fire

A settlement among state regulators, Pacific Gas & Electric, and San Francisco approved February 16 requires PG&E shareholders to pay $6 million to fund five programs and projects to improve electric system reliability. The utility will also pay $500,000 to the state's general fund. The settlement also dispenses with hearings on the case. "There is no need for a hearing because the underlying documentation is so thorough," said Rich Clark, director of the California Public Utilities Commission's Consumer Protection and Safety Division. The deal, which was reached last October, negates the $14.6 million fine sought by the city and the $10 million fine sought by the CPUC consumer safety division. "Everyone's pleased with the outcome," said Paul Moreno, PG&E spokesperson. The utility suffered a fire December 20, 2003, at its Mission Substation. The CPUC investigated that incident along with the 1996 fire at the same substation. On March 26, 2005 - right after the CPUC began to look into the first two fires - a third fire broke out at Mission Substation. "There is quite a history here," said CPUC president Mike Peevey. The commission discovered that the utility did not implement its own internal recommendations, following the 1996 fire, regarding operational response procedures, the lack of smoke detection equipment, and the lack of fire barrier penetration sealing. Of the total settlement, $3 million is designated for reliability improvements to PG&E's electric system in San Francisco. A fire safety program for San Francisco will receive $750,000. The city will also get $750,000 to improve public safety in the event of an outage. A Hunters Point Substation Improvement Program that would improve the appearance of the blighted area is slated for $1 million. Another $500,000 is earmarked to create a substation inspection program.

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PG&E Fined $6.5M for Substation Fire

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