Calif. utility fined $1.6B over 2010 explosion

Pacific Gas and Electric Co. was hit Thursday with a $1.6 billion fine for its role in a 2010 natural gas pipeline explosion in a San Francisco suburb.

It is the largest fine California’s Public Utility Commission has ever levied, the Los Angeles Times reported.

{mosads}The penalty includes requiring PG&E to pay $850 million to improve its gas pipeline system, and the entire cost must come from the company and shareholders, with nothing coming from ratepayers.

The San Bruno explosion killed eight and was one of the worst pipeline disasters in recent history.

PG&E is accused of breaking multiple state and federal laws, leading to the incident, the Times said.

The commission voted to assess the penalty 4-0. It also announced an investigation into the “culture of safety” at the utility.