I. INTRODUCTION
At 6:11pm on September 9, 2010, a 30-inch diameter natural gas transmission pipeline, owned and operated by Pacific Gas and Electric Company (PG&E) ruptured in a residential neighborhood in San Bruno, California. Gas escaping from the rupture ignited, causing an intense fire which killed eight people, injured 58 others, destroyed 38 homes, and damaged another 70 homes. We are deeply saddened by this incident and troubled by the apparent causes.
The National Transportation Safety Board (NTSB)1, the Independent Review Panel (IRP),2 and the Commission's Consumer Protection and Safety Division (CPSD) have completed investigations into the causes of the incident. CPSD's investigators arrived at the accident site shortly after the incident occurred, and have cooperated extensively with and assisted the NTSB investigation during the past year. The NTSB Report (issued on August 30, 2011) finds that the pipeline segment that ruptured was not properly manufactured or installed, safety standards were overlooked or ignored, PG&E's inspection and maintenance practices over time were deficient and ineffective, and that PG&E's response to the incident was excessively slow.
The CPSD Report being issued with this Order3 alleges that PG&E violated the California Public Utilities Code, various federal and state pipeline safety regulations, and accepted industry standards. CPSD's investigation alleges that the incident in San Bruno was caused by PG&E's failure to follow accepted industry practice when installing the section of pipe that failed, PG&E's failure to comply with federal pipeline integrity management requirements, PG&E's inadequate record keeping practices, deficiencies in PG&E's data collection and reporting system (known as Supervisory Control and Data Acquisition, or SCADA), inadequate procedures to handle emergencies and abnormal conditions, PG&E's deficient emergency response actions after the incident, and a systemic failure of PG&E's corporate culture that emphasized profits over safety.
The Commission institutes this formal proceeding to evaluate CPSD's Report and determine whether PG&E, and its officers, directors, and managers, violated any provisions of the California Public Utilities Code, Commission General Orders or decisions, or other applicable standards, laws, rules or regulations in connection with the San Bruno fire and explosion on September 9, 2010. This investigation will not be solely limited to the events that took place on September 9, 2010, but shall include all past operations, practices and other events or courses of conduct that could have led to or contributed to the San Bruno explosion and fire. We will specifically consider what monetary fines and other remedies are appropriate to ensure that a catastrophe of this type does not occur again.
1 The NTSB's Accident Report of the San Bruno rupture and fire is titled "NTSB/PAR-11/01 PB2011-916501" (NTSB Report) and is available at http://www.ntsb.gov/doclib/reports/2011/PAR1101.pdf.
2 Commission Resolution L-403 established an Independent Review Panel to assist in the fact-finding investigation of the San Bruno explosion and the overall safety of PG&E's gas transmission lines. Its final report is available on the CPUC website at: http://www.cpuc.ca.gov/NR/rdonlyres/85E17CDA-7CE2-4D2D-93BA-B95D25CF98B2/0/cpucfinalreport_v2.pdf
3 "CPSD Incident Investigation Report into the September 9, 2010, PG&E Pipeline Rupture in San Bruno, California" (CPSD Report) is released today and will be made an exhibit in this proceeding. ( http://www.cpuc.ca.gov/PUC/sanbrunoreport.htm)
