PG&E will pay the City of San Bruno $70 million restitution

San Mateo Times/Mike Taugher and Aaron Kinney, 3/12/12, "PG&E, San Bruno reach $70 million restitution agreement."

San Bruno explosion and fire photo

"PG&E has agreed to pay the city of San Bruno $70 million as compensation for the 2010 gas pipeline explosion that killed eight people and destroyed dozens of homes, the city and utility announced Monday.  The settlement comes less than a month after San Bruno officials publicly accused the company of dragging its feet in negotiations. "The money will be used for the benefit of all the citizens of our city and to help us, as a community, get beyond the tragedy and devastation caused by PG&E's explosion and fire here in September 2010," said San Bruno Mayor Jim Ruane.

City officials said they could find no other examples of a company paying restitution directly to a city.
No decisions have been made on how the money will be spent. It will be managed by a nonprofit the city will form, and decisions will be made after a public process, said City Manager Connie Jackson.

As part of the deal, San Bruno agreed to cap at $50 million a separate trust fund that PG&E created. That fund, which was previously limited to $70 million, is being used to replace infrastructure destroyed in the blast, pay for social services for residents, and city staff time, Jackson said. In addition, the city will seek portions of whatever fines regulators impose on PG&E. PG&E also faces dozens of lawsuits from victims of the blast."

Reference -  Huffington Post/Adam J. Rose article and 33 photos 9/12/10.. SFist photos, 9/10/12.  Los Angeles Times, 9/9/12

Posted by Kathy Meeh