On March 24, 2011, in Decision (D.) 11-03-047, the Commission issued its Order to Show Cause Why Pacific Gas and Electric Company Should Not Be Found in Contempt, and Why Penalties Should Not Be Imposed, For Failure to Comply with Commission Order. The Commission found that Pacific Gas and Electric Company (PG&E) appeared to have failed to comply with Commission Resolution L-410 and Rulemaking (R.) 11-02-019. The Resolution and Rulemaking decision required PG&E to review "traceable, verifiable, and complete" as-built drawings and pipeline system components and, based on the reliable pipeline specifications, calculate the Maximum Allowable Operating Pressure (MAOP). The Order to Show Cause set a hearing for PG&E to present evidence. At the hearing on March 28, 2011, PG&E and the Commission's Consumer Protection and Safety Division (CPSD) announced that they had reached a stipulation that provided for a detailed compliance plan for PG&E as well as an immediate fine of $3 million, with an additional $3 million payment for any failure to conform to the compliance plan. On March 30, 2011, PG&E and CPSD filed separate motions for Commission approval of the stipulation.
The Commission categorized the Order to Show Cause as adjudicatory and, consistent with Rules 1.3(a) and 8.2(b), ex parte communications regarding the Order to Show Cause were prohibited. Pursuant to Public Utilities Code § 1701.2(d), adjudicatory proceedings are to be completed by the Commission within one year of initiation, absent a Commission order extending the deadline.
On January 19, 2012, the assigned Commissioner issued a ruling requiring PG&E and CPSD to file and serve a status report on PG&E's compliance with Resolution L-410 and R.11-02-019 and, based on this status, recommendations as to next steps in furtherance of the public interest. On February 3, 2012, CPSD and PG&E filed their joint status report, which recommended that the Commission order PG&E to pay a fine of $3 million and close this aspect of the proceeding. No party opposed the joint request. A proposed decision granting the joint request was mailed on February 22, 2012, and is planned to be on the Commission's March 22, 2012, agenda.