New Bill Aims to Use PG&E Fines to Save Customers Money

Story updated at 7 p.m. 

Assemblyman Jerry Hill said today he will be proposing a new bill to save PG&E customers money by requiring that state regulators use pending fines against the company to offset costs for its pipeline upgrade program.

Last year, PG&E to enhance its pipelines in response to the National Transportation Safety Board investigation that found the company at fault for the 2010 San Bruno pipeline explosion. PG&E proposed that ratepayers pick up 90 percent of the tab.

Hill, D-San Mateo, has been one of the most vocal critics against PG&E's plan, and he said his legislation, AB 478, would target the money PG&E has set aside this year to pay for fines levied for pipeline safety violations. PG&E executives have said for three separate investigations by the California Public Utilities Commission for the San Bruno fire.

Under the bill, the CPUC would apply the money that PG&E would be fined to the first phase of its pipeline modernization plan, which is expected to start later this year.

Otherwise, Hill said, the fines would have to be deposited into the state's general fund.

According to Hill, his legislation would save ratepayers at least $660 million.

PG&E spokesman David Eisenhauer said that PG&E has not taken a position on Hill's legislation.

Eisenhauer said the company supports the concept and registered support for a similar bill introduced by Sen. Mark Leno in February, SB 1350, which, because of concerns on its impact on the general fund, stalled in the Senate Appropriations Committee.

Hill said that his bill, which was co-authored by Leno, differs in that it is specifically tied to the San Bruno disaster.

Because the fines have yet to be levied, Hill does not expect strong opposition within the Legislature over the loss of the general fund revenue source.

"These funds are not going to be budgeted this year, regardless, and it could be years down the road before those fines are imposed," Hill said. "This gets more to the issue of equity and fairness."

Bay City News Service contributed to this story.

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