December 1, 2011

Will San Bruno Be a “Game-Changer”?

By Vidhya Prabhakaran

Energy professionals and the general population are both acutely aware of the explosion of a Pacific Gas & Electric Co. (PG&E) natural gas pipeline in San Bruno, Calif., that led to the death of eight people and the total destruction of 38 homes in September 2010. The tragic accident garnered immediate national attention, thrusting the natural gas industry into the spotlight. The California Public Utilities Commission’s (CPUC) Independent Review Panel neatly encapsulated the sentiment surrounding the event: “The fact that a large segment of pipe literally blew out of the ground in an urban neighborhood and the residents were generally unaware of the proximity of a high-pressure natural gas transmission system to their homes—raises significant public safety concerns.”

In the aftermath of the explosion, the National Transportation Safety Board (NTSB) and the CPUC each launched an independent investigation to gather facts and make recommendations for the improvement of the safe management of PG&E’s natural gas lines. Each investigation took nearly an entire year to conduct, and the resulting reports were widely expected to make recommendations and findings that would have a nationwide impact on the conduct and future of the entire natural gas industry.

In communications with the media, many regulators have routinely identified San Bruno as a “game-changer.” In addition, CPUC Executive Director Paul Clanon has been quoted as saying that the CPUC “has not rested one day in improving what we do” since the San Bruno explosion. Regulators for other public utility commissions have made similar commitments of renewed commitment to safety. Has San Bruno been the “game-changer” promised? Have regulators improved their oversight?