Friday, September 17, 2010

PG&E (NYSE:PCG) Put Off Fixing San Bruno Pipeline

Some news reports have emerged saying Pacific Gas & Electric Co. (NYSE:PCG) had raised $5 million dollars through increasing rates on its customers for the purpose of fixing the pipeline that ended up exploding in San Bruno, but never spent the money for it after it was raised.

To make matters seemingly worse, PG&E had also submitted a request to the California Utility Commission for $5 million for the same project. From there the work would have been completed by 2013.

The company responded to the assertions on its website saying, "PG&E performed an External Corrosion Direct Assessment in 2009 and based on the updated assessment, and the assurance it provided us, we rescheduled the project accordingly."

PG&E had been given clearance by California regulators to upgrade the pipe in 2007.

California governor Arnold Schwarzenegger has asked for the San Bruno area to be declared a federal disaster.

Schwarzenegger said in a letter to Obama, "This event has destroyed and caused serious damages to homes, infrastructure, and other public facilities in San Mateo County. The response and recovery costs for this event are estimated at nearly $10.4 million."

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