PG&G diverted safety funds to bonuses
March 28, 2015
PG&E diverted more than $100 million in monies for safety and operations to bonuses for executives and shareholder profits over a 15-year period that is linked to the 2010 San Bruno disaster, according to an independent audit and a staff report issued by the California Public Utilities Commission on Thursday.
The documents describe a poorly led company that is more concerned with profit than safety. Also, the commission said the pattern of spending is linked to the 2010 pipeline explosion in San Bruno that killed eight people and destroyed 38 homes. [SFGate]
The information uncovered in the documents could lead to millions of dollars in fines. In addition, the commission recommended changes in how PG&E spends money on gas-system maintenance before it seeks additional ratepayer funds.
Specifically, PG&E should allocate $95.4 million that the company under-spent on capital expenditures since 1997 – including pipeline replacement – for those purposes, it should use the $430 million in additional revenue it collected since 1999 “to fund future transmission and storage operations,” and it should use $39.3 million that it collected but failed to spend for pipeline-transmission operations and maintenance since 1997 for those purposes.
Suggestions that are not in line with PG&E’s current plans.
In August, PG&E outlined a plan to modernize its gas-transmission lines in response to the San Bruno disaster. PG&E’s plan is to spend $2.2 billion in upgrading its gas transmission systems, with 90 percent of that to be paid by gas customers through rate increases, with the rest covered by company investors.
Don’t miss breaking news stories, like CCN on Facebook.