Peninsula News

San Bruno receives $70 million from PG&E over blast

Saturday, April 14, 2012
PG&E crews work to restore gas lines

In this file photo, PG&E crews work to restore gas lines at the site of a gas pipeline explosion in San Bruno, Calif., Friday, Aug. 19, 2011. (AP Photo/Marcio Jose Sanchez)

The city of San Bruno received $70 million Friday from PG&E in restitution for a Sept. 9, 2010, gas pipeline explosion that killed eight people and destroyed or damaged more than 100 homes.

The settlement, announced March 12, was reached after months of negotiations between the city and utility and is attempted to help the community recover from the blast, according to city officials.

It comes in addition to a previous $70 million trust set aside by PG&E to pay for direct damages from the explosion, such as destroyed pipelines, sewers, roads and other infrastructure.

The city is working to establish a not-for-profit public purpose entity to manage the money and determine how they should be spent, a process that could take as long as a year, Mayor Jim Ruane said.

"These funds will never bring back the lives that were taken, the memories that were destroyed and the city prior to 6:11 p.m. Sept. 9, 2010," Ruane said. "We will never forget the tragedy, but we must move beyond the explosion as individuals and as a community."

"These restitution funds will be used for a greater good for all the citizens of our city and to help us, as a community, move forward," Ruane said.

PG&E has pledged not to seek to recover the payment through insurance or ratepayers.

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