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PG&E Says Deadline For Safety Records Was Unrealistic

SAN FRANCISCO (KCBS) ---- PG&E officials say they shouldn't have to pay an even larger fine for not turning over all its pipeline safety records by March 15th as part of the investigation of last year's deadly natural gas explosion in San Bruno.

Utility officials say they had an understanding with government regulators that compliance wasn't physically possible.

KCBS' Doug Sovern Reports:

The staff of the California Public Utilities Commission (CPUC) cut a deal with PG&E to pay a $3 million fine and then three million more if all the documents proving the safety of its natural gas pipeline system aren't delivered by the end of August. The commission is also considering a much bigger penalty.

But PG&E attorney Joseph Malkin told the CPUC that's not fair because the commission staff agreed to let PG&E comply in two phases between March and August.

Photo Gallery: San Bruno Pipeline Explosion

"Phase one was going to be collecting the basic records," he said. "Phase two was going to be then to analyze more closely the miles of pipe for which we didn't have the pressure test records."

A top commission staffer confirms that agreement, but CPUC executive director Paul Clannon said PG&E is playing legal games to try to save millions of dollars in fines.

"I sent a letter to PG&E on March 16 giving exactly my judgment of what PG&E filed and what they were supposed to file," Clannon said. "They didn't do what they were supposed to file on March 15."

(Copyright 2011 by CBS San Francisco. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed.)

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