Pipeline Explosion Survivors Accuse PG&E of Not Using Rate Hike Funds for Repairs

Monday, November 08, 2010
San Bruno Explosion (AP Photo: Tony Avelar)
Survivors of the deadly gas-pipeline explosion that occurred September 9th in San Bruno, California, are suing Pacific Gas & Electric for causing the disaster. Among the claims leveled at PG&E is the assertion that the company received $5 million in taxpayer money for repairs to the pipeline that were never performed.
 
Fifty-two plaintiffs representing 18 families say the utility asked for rate increases in 2007, 2008 and 2009 to cover the cost of replacing the 54-year-old underground pipeline. PG&E is accused of keeping old manual shut-off valves in place on the 1950s-era pipe, instead of upgrading to modern equipment that can be controlled remotely.
 
At a press conference in September, PG&E president Chris Johns explained the failure to make the repairs by saying, “Some things happen when we’re going down, and a year later maybe some other item becomes more emergent that we need to fix. And so that’s why we will redirect funds to take care of the things that are urgent today, and then go back and say what are the things that are urgent tomorrow.”
 
The families also claim the company “knew of gas leaks prior to the explosion. Three weeks prior to the incident, Crestmoor residents reported to PG&E the odor of gas emanating from the street and sewers,” according to the lawsuit.
 
Eight people died as a result of the explosion and fire that destroyed 37 homes.
-Noel Brinkerhoff, David Wallechinsky
 
Families Blame PG&E for 'Preventable' Disaster (by Maria Dinzeo, Courthouse News Service)
Lawsuit against PG&E (California Superior Court, San Mateo County) (pdf)

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