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City: PG&E stops talks on fund for pipeline blast

APNewsBreak: City says utility breaks off talks on compensation fund for pipeline explosion By The Associated Press

SAN FRANCISCO (AP) ' The city of San Bruno said Wednesday that Pacific Gas & Electric Co. has broken off settlement talks with the city about a compensation fund for a gas pipeline explosion that killed eight people and destroyed 38 homes.

However, PG&E said it remained willing to talk, although it declined to provide details about the status of negotiations.

Officials in the San Francisco suburb want the utility to make good on its promise to pay restitution for the September 2010 blast that laid waste to a quiet subdivision overlooking the San Francisco Bay.

San Bruno spokesman Sam Singer said city officials have been negotiating a confidential settlement with PG&E executives, including President Chris Johns, since last fall. But Singer said the utility abruptly walked away from the negotiating table last week.

"PG&E owes it to this community to pay restitution so it can build a library, a park, a memorial, and do something new to rebuild the spirit of this city that was devastated by this blast," Singer said. "PG&E has walked away from the table, and we want them to negotiate in good faith."

PG&E spokesman Dave Eisenhauer said Wednesday the company was happy to sit down with city administrators.

"We've been working with the city and the community and have been there supporting the city since this terrible accident," he said. "Our contact with the city is ongoing, it's constant."

Singer said he was surprised to hear the utility remained open to negotiations, and he urged company executives to rejoin San Bruno officials at the table, nearly a year and a half after the accident.

Singer said city officials plan to ask the California Public Utilities Commission to join the talks about restitution. The commission did not immediately comment on how it would respond to such a petition.

Any settlement would be in addition to a trust fund PG&E created to pay up to $70 million to help the city cover the cost of rebuilding.

Federal accident investigators lay the blame on PG&E for the explosion, saying a litany of failures led to the blast, which they concluded wasn't the result of a simple mechanical failure but rather an "organizational accident."

Escaping gas fed a pillar of flame 300 feet tall for more than 90 minutes before workers were able to manually close valves that cut off gas to the ruptured pipeline. Investigators said the damage would have been less severe had automatic valves been in place.

Dozens of people were injured and more than 100 homes destroyed or damaged in the bedroom community.

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Related Keywords:Pipeline Explosion,Municipal governments,Explosions,Urban renewal,Accidents and disasters,Local governments,Government and politics,General news,Social issues,Social affairs


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