PG&E to Pay $70 Million in Restitution to San Bruno, CA

"The lasting legacy of Sept. 9, 2010 is San Bruno's dedication to ensure this type of disaster is never allowed to happen again," said Mayor Jim Ruane.

Pacific Gas and Electric Company agreed to pay $70 million in restitution to the city of San Bruno, Calif., to help the city's recovery from the Sept. 9, 2010, gas pipeline explosion there, the two parties announced March 12. Their agreement calls for a $70 million payment to be made by PG&E within 30 days.

"I am pleased to announce that San Bruno has reached a settlement with PG&E for restitution for the community of San Bruno," Mayor Jim Ruane said in a statement posted by the city and the utility. "This 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."

"The community of San Bruno has suffered through a terrible tragedy, and we understand that this accident will affect this community forever," said PG&E President Chris Johns. "We committed the night of the tragedy and continue to commit that we will help the victims and the community heal and rebuild. Today's announcement is another step in that process. It is one that we hope will provide the community with the assurance that the resources will be there to rebuild the infrastructure that was damaged and provide for improvements where the community sees fit. We will continue to work with the victims and the community as a whole to address their needs. All 20,000 PG&E employees are working hard to make sure we have the safest gas and electric system in the United States."

The city's release said it will create a separate, not-for-profit public purpose entity to manage the funds and determine how the restitution should be spent for the benefit of the entire community. The $70 million payment is on top of PG&E's commitment to fund replacement and repair of the city's infrastructure and other costs related to the accident and the restoration of the neighborhood. The city said PG&E won't seek to recover the payment through insurance or customer rates.

"As a community and as a city, we remain fully dedicated to assuring our community's full recovery,” said Ruane. "We will continue to advocate for the highest standards of pipeline safety, not only for our city, but throughout the nation. The lasting legacy of Sept. 9, 2010 is San Bruno's dedication to ensure this type of disaster is never allowed to happen again. PG&E and all utilities must uphold the highest safety standards for the safety of all."

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