Proceeding Number I.14-11-008 PACIFIC GAS AND ELECTRIC COMPANY’S RESPONSE PURSUANT TO RULE 14.4(D) OF THE CALIFORNIA PUBLIC UTILITIES COMMISSION RULES OF PRACTICE AND PROCEDURE TO THE APPEALS OF THE SAFETY AND ENFORCEMENT DIVISION AND CITY OF CARMEL-BY-THE-SEA

ABSTRACT: Re: BEFORE THE PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA Order Instituting Investigation And Order to Show Cause on the Commission’s Own Motion into the Operations and Practices of Pacific Gas and Electric Company with Respect to Facilities Records for its Natural Gas Distribution System Pipelines, the PACIFIC GAS AND ELECTRIC COMPANY’S RESPONSE PURSUANT TO RULE 14.4(D) OF THE CALIFORNIA PUBLIC UTILITIES COMMISSION RULES OF PRACTICE AND PROCEDURE TO THE APPEALS OF THE SAFETY AND ENFORCEMENT DIVISION AND CITY OF CARMEL-BY-THE-SEA and APPENDIX A PG&E’s Measures to Continue to Improve Gas Distribution Recordkeeping and Promote Safety and APPENDIX B  PG&E’s Responses to Proposed Remedial Measures document copies are embedded. 

INTRODUCTION Pursuant to Rule 14.4(d) of the California Public Utilities Commission (Commission) Rules of Practice and Procedure, Pacific Gas and Electric Company (PG&E) hereby submits this joint response to the Appeals of the Presiding Officer’s Decision (POD)1 filed by the Safety and Enforcement Division and the City of Carmel-by-the-Sea.

Third, PG&E explains why SED’s and Carmel’s proposals for calculating higher fines for specific incidents, including the Carmel incident, are inappropriate. SED’s and Carmel’s alternative proposals largely involve a mechanical application of fines at the top of the statutory range, while giving no consideration to the fact-specific criteria that must be considered under the Public Utilities Code and Commission precedent when determining an appropriate penalty. PG&E submits that the decision in this proceeding should consider the evidence of record and the relevant criteria for assessing a penalty—including factually comparable precedents, the relative severity of the incidents, PG&E’s commitment to continuous improvement, and the objective measures demonstrating PG&E’s general compliance with regulations.

Fourth, PG&E explains how SED and Carmel misconstrue the evidentiary record and the POD’s findings in challenging the fine imposed regarding the De Anza leak repair records.
CONCLUSION PG&E has an unwavering commitment to continuously improving not only its gas distribution system recordkeeping practices but also the safety of its distribution system, and complying with all applicable rules, regulations, and statutes. PG&E is also committed to continuing to work with the Commission to pursue these important goals. The many initiatives PG&E has undertaken to build state-of-the-industry infrastructure, achieve recordkeeping best practices, and minimize the risk of incidents on its gas distribution system demonstrate the durability and sincerity of PG&E’s commitment. 

PG&E acknowledges that more work remains to be done and that, at times in the past, its conduct has not measured up to the high expectations that the Company sets for itself. PG&E intends to continue doing exactly what it has been doing—focusing on safety, finding and fixing issues as they arise, and searching for innovative, effective, and technologically advanced solutions to the challenges that remain.
For the reasons stated above, PG&E submits that the arguments advanced on appeal by SED and Carmel for increasing the penalties imposed in the POD are unsupported by or contrary to the evidence of record, inconsistent with the governing legal standards, and accordingly should be rejected by the Commission. PG&E looks forward to working cooperatively with SED and the Intervenors in the meet-and-confer process to identify and consider further opportunities to continue improving its recordkeeping and other practices to better serve the public and promote the safety of its system.

Pg&e Company's Response i.14!11!008 7-18-16 by L. A. Paterson on Scribd

FILED 7-18-16
PACIFIC GAS AND ELECTRIC COMPANY’S RESPONSE PURSUANT TO RULE 14.4(D) OF THE CALIFORNIA PUBLIC UTILITIES COMMISSION RULES OF PRACTICE AND PROCEDURE TO THE APPEALS OF THE SAFETY AND ENFORCEMENT DIVISION AND CITY OF CARMEL-BY-THE-SEA

Pg&e Appendix a 7-18-16 by L. A. Paterson on Scribd

APPENDIX A

PG&E’s Measures to Continue to Improve Gas Distribution Recordkeeping and Promote Safety

Pg&e Appendix b 7-18-16 by L. A. Paterson on Scribd

APPENDIX B
PG&E’s Responses to Proposed Remedial Measures