In California last week, the state Public Utilities Commission meted out a huge fine for safety violations, and made sure that the transgressor’s customers won’t pay a penny of it.
The Pacific Gas & Electric Co. will fork over $1.6 billion—a record penalty—for violating state and federal pipeline safety standards and causing a 2010 natural gas explosion that killed eight people and obliterated a neighborhood in San Bruno.
PG&E said it will not appeal.
The regulators made it clear that the fine will be paid by the company and its shareholders, and no part of it will be passed on to customers in the form of rate hikes.
That’s my kind of regulatory rectitude.
Copyright © Richard Carl Subber 2015