PG&E to pay $70M to ease city's blast pain

March 13, 2012 at 1:17 AM
share with facebook
share with twitter

SAN BRUNO, Calif., March 13 (UPI) -- Pacific Gas and Electric Co. will pay San Bruno, Calif., $70 million for the 2010 pipeline explosion on top of money to pay for rebuilding, officials said.

City officials agreed to a $50 million cap on the fund for repairs, the San Francisco Chronicle reported. The additional money, compensation for the city's pain and suffering, will go into a separate fund with officials and residents deciding how to use it, Mayor Jim Ruane said, Monday.

"Everybody was traumatized by this, not just the residents of the particular neighborhood but the city as a whole," Ruane told the Chronicle. "We wanted a settlement to do something going forward for the entire city."

The explosion left eight people dead and 38 houses in ruins. The city's settlement, which was approved by the council Friday and signed by the mayor Monday, is separate from litigation by residents, who can also seek punitive damages, something the city is barred from by law.

"The community of San Bruno has suffered through a terrible tragedy and we understand that this accident will affect this community forever," PG&E President Chris Johns said. "We committed the night of the tragedy and continue to commit that we will help the victims and the community heal and rebuild."

Related UPI Stories
Trending Stories