Milpitas 1, October 10, 2012, PG&E crew relied on inaccurate plat map showing nonemergency distribution main valve was “open” when it was actually “closed” PG&E crew did not monitor pressure gauges which were showing pressures inconsistent with engineering model Service outage for 987 customers Not eligible for “damaged pipe” rule. Not due to poor recordkeeping, this incident was the result of poor operational management, and resulted in large service outage. Find that each service interruption is a separate violation. Milpitas 2, March 4, 2013, contractor dug into mismarked 2 inch plastic distribution main Gas release $50,000 1 violation @ $50,000 Mountain View, July 30, 2013, PG&E Gas release $100,000
crew welded tap fitting onto a 1 ¼ inch steel service line that unknowingly contained a plastic insert 2 violations @ $50,000 each. (Also part of failure to minimize recurrence fine) Carmel, March 3, 2014, PG&E crew welded a tapping tee into a 2 inch steel distribution main with unmapped plastic insert, natural gas migrated into the unoccupied residence, collected and exploded hours later. Residence destroyed, value = $302,000 $100,000 2 violations @ $50,000 each Citation for $10.8 million already paid to General Fund. (also part of failure to minimize recurrence fine)
San August 12, 2009, contractor damaged unmapped and unmarked 2inch service to restaurant Gas released, service to business interrupted $40,000 2 violations @ $20,000 each Kentfield, contractor struck and damaged unmapped and unmarked 2inch plastic main lacking a tracer wire Gas release $20,000 1 violation @ $20,000 each Sacramento, October 31, 2011, contractor struck and damaged 1 ¼ inch plastic service line, marking was faulty due to loss of signal Gas release $20,000 1 violation @ $20,000 each Fresno, September 24, 2014 PG&E crew struck and damaged a mismapped Gas release $100,000 2 violations @ $20,000 each
and mismarked 1inch plastic gas service line. San Jose II, January 20, 2015, contractor hit and damaged 1 ¼ inch steel stub extending from 4inch main. Stub was not mapped or marked, but main was. Gas release, major traffic diversion and evacuation of 12 businesses $100,000 2 violations @ $50,000 each Colusa, 19, 2009 PG&E crew struck 2inch steel gas main which was unmarked off of marked 3inch main. Gas release $40,000 2 violations @ $20,000 each Roseville, October 21, 2010, contractor struck and damaged 2inch plastic Gas release, evacuation of 6 buildings $40,000 2 violations @ $20,000 each
gas distribution main, incorrectly marked by PG&E SED Inspection San Francisco, Leak 1, plastic insert installed in December 2013 not reflected in current map noncompliance Aggravating factor failure to minimize recurrence fine. SED inspection of San Francisco, Leak 2, found plastic insert installed in May 2013 not reflected in current map noncompliance Aggravating factor failure to minimize recurrence fine. SED inspection of San Jose Leak 1 found plastic insert installed in October 2013 mapped to wrong address noncompliance Aggravating factor failure to minimize recurrence fine. SED inspection of noncompliance Aggravating factor failure
The City also recommended linking executive compensation to safety performance; a similar proposal was also examined and found duplicative or unsupported in D.15-04-024 at 167. Finally, the City of Carmel-by-the-Sea sought appointment of an independent monitor. That proposal was also considered in D.15-04-024 at 155– 60, where the Commission authorized another $30 million in reimbursement for experts for SED in addition to the $15 million awarded in Rulemaking 11-02-019, and otherwise denied the requested independent monitor. Finally, the parties agree that the fines ordered in today’s decision may not be included in regulated revenue requirement nor recovery sought from ratepayers in any manner. The City of Carmel-by-the-Sea brought the unique perspectives of local government and first responders to this proceeding. The efforts of the City to bring forth these perspectives added greatly to the development of a complete evidentiary record and assisted the Commission in discharging its duties. Assignment of Proceeding Carla J. Peterman is the assigned Commissioner and Maribeth A. Bushey is the assigned Administrative Law Judge in this proceeding. Findings of Fact The Commission opened this proceeding to investigate six listed incidents of damage to PG&E’s natural gas distribution system as well as to examine whether PG&E’s operations of its natural gas distribution system was consistent with federal and state law and regulations.
MORGAN STANLEY 1585 BROADWAY, 38TH FLOOR NEW YORK NY 10036 (212) 761-6586 Jim.Kobus@morganstanley.com Attorney At Law PACIFIC GAS AND ELECTRIC COMPANY 77 BEALE STREET, B30A SAN FRANCISCO CA 94105 (415) 973-4620 eacp@pge.com Jonathan Pendleton PACIFIC GAS AND ELECTRIC COMPANY 77 BEALE STREET, B30A SAN FRANCISCO CA 94105 (415) 973-2916 j1pc@pge.com Kristina Castrence Principal Gas Regulatory Specialist PACIFIC GAS AND ELECTRIC COMPANY EMAIL ONLY EMAIL ONLY CA 00000 kmmj@pge.com Lauren Hudson Senior Case Manager PACIFIC GAS AND ELECTRIC COMPANY 77 BEALE STREET, MC B9A SAN FRANCISCO CA 94105 (415) 973-8340 LDRi@pge.com Lessly Wikle Field PACIFIC GAS AND ELECTRIC COMPANY EMAIL ONLY EMAIL ONLY CA 00000 law0@pge.com Meredith Allen PACIFIC GAS AND ELECTRIC COMPANY PO BOX 770000, MAILCODE B10C SAN FRANCISCO CA 94177 (415) 973-2868 MEAE@pge.com Karen Paull EMAIL ONLY EMAIL ONLY CA 00000 (415) 703-2630 karenppaull@gmail.com Michael A. Hyams Power Enterprise-Regulatory Affairs SAN FRANCISCO PUBLIC UTILITIES COMM 525 GOLDEN GATE AVE., 7TH FLOOR Ryan Fant SIDLEY AUSTIN LLP EMAIL ONLY EMAIL ONLY CA 00000 (415) 772-7405 rfant@sidley.com Theresa Scuffil SIDLEY AUSTIN LLP EMAIL ONLY EMAIL ONLY CA 00000 (415) 772-7405 tscuffil@sidley.com Joshua Hill SIDLEY AUSTIN, LLP 555 CALIFORNIA STREEET, SUITE 2000 SAN FRANCISCO CA 94104 (415) 772-1200 jhill@sidley.com Paul Belonick SIDLEY AUSTIN, LLP 555 CALIFORNIA STREET, SUITE 2000 SAN FRANCISCO CA 94104 (415) 772-1200 pbelonick@sidley.com Kevin Fallon SIR CAPITAL MANAGEMENT EMAIL ONLY EMAIL ONLY NY 00000 (212) 993-7104 kfallon@sirfunds.com Shirley Amrany Regulatory Case Manager SOCALGAS COMPANY / SDG&E 555 WEST 5TH STREET, GT14-D6 LOS ANGELES CA 90013 (213) 244-4845 SAmrany@SempraUtilities.com Fadia Khoury Sr. Attorney