California regulators must weigh
whether a $2.25 billion penalty for safety lapses is worth
potentially pushing
PG&E Corp. (PCG), owner of the state’s largest
utility, into bankruptcy for the second time in 12 years.
PG&E expects the California Public Utilities Commission to
decide by the end of this year on a punishment for a September
2010 natural gas pipeline explosion that killed eight people.
Imposing the staff’s proposed penalty may force the company into
bankruptcy if it can’t sell enough shares to pay for it,
Chairman and Chief Executive Officer Tony Earley said in an
interview yesterday at Bloomberg headquarters in
New York.
“If the purpose was to get the company’s attention, you
have the company’s attention,” said Earley, who took over a
year after the accident. A $2.25 billion penalty would bring
PG&E’s total tab for the disaster to $4 billion, including money
already spent on pipeline upgrades and safety work, Earley said.
The San Francisco-based company has asked regulators to credit
money already spent against any fine imposed.
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