California regulators have proposed that Pacific Gas & Electric Co. pay a record $2.25-billion penalty for its role in causing a fatal 2010 natural gas explosion in San Bruno, a San Francisco suburb.
The total includes a $300-million fine to be paid to the California treasury and $1.95 billion for safety upgrades to the company's gas distribution system. About $1.5 billion would be paid by shareholders and the balance would be returned as a credit to PG&E for already completed distribution system repairs and safeguards.
The proposed financial penalty comes almost three years after the Sept. 9, 2010, explosion of a transmission line that killed eight people and destroyed 38 homes in a neighborhood near the San Francisco International Airport.
Consumer advocates praised the proposed penalty that is expected to go before the five-member California Public Utilities Commission in the fall.