PG&E to record $110M charge in Q3 related to San Bruno incident

theflyonthewall.com

PGE&E disclosed in a regulatory filing that on September 6 and September 9, Pacific Gas and Electric, a subsidiary of the company, agreed to settle the claims of substantially all of the remaining plaintiffs who sought compensation for personal injury and property damage, and other relief, including punitive damages, following the rupture of one of the utility’s natural gas transmission pipelines in San Bruno, California on September 9, 2010. As previously disclosed, approximately 160 lawsuits on behalf of approximately 500 plaintiffs had been filed against the Utility. At June 30, the utility had recorded cumulative charges of $455M for third-party claims for personal injury, property damage, and damage to infrastructure related to the San Bruno accident. Of this amount, the utility had made cumulative payments of $388M for settlements through June 30. Also, at June 30, the utility estimated that it was reasonably possible it would incur as much as an additional $145M for unresolved claims, for a total possible loss of $600M. During the quarter ended September 30, the utility expects to record a charge of approximately $110M in addition to the cumulative charges of $455M to reflect the settlements reached on September 6 and September 9 and the utility’s estimated liability for remaining third-party claims for personal injury, property damage, and damage to infrastructure, including claims by government entities.

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