X Public Utilities Commission Citation Date ... - …

1 XPublic Utilities CommissionSTATE OF CALIFORNIAC itation Date:March29, 2016 Citation #:ALJ 274 16-03-001 Operator ID#:15007 Citation FOR VIOLATION(S)ISSUED PURSUANT TO RESOLUTION ALJ-274OF GENERAL ORDER 112 Gas Corporation (Operator):Pacific Gas & Electric Company(PG&E)RESPONDENT:Mr. Jesus Soto, Vice PresidentPacific Gas & Electric Company6111 Bollinger Canyon Road, Room 4590-DSan Ramon, CA 94583 Citation :Operator is hereby citedforsystem-wideviolationsrelated tothe Operator Qualification (OQ)ruleas it relates toPG&E scross-bore inspection program,resulting in a financial penalty of$200,000 VIOLATIONS:Operator is citedfor violatingGeneral Order 1121, as described Qualificationprogram.

2 Each operator shall have and follow awrittenqualification program. Theprogram shall include provisions to:(a)Identify covered tasks;(b)Ensure through evaluation that individuals performing covered tasks PG&E contracted outactivitiesrelated to the cross bore inspectionprogramto a third party. The third party provided some training toitsownpersonnelto do proximity clearances. The training does not appear toXPublic Utilities CommissionSTATE OF CALIFORNIAC itation Date:March29, 2016 Citation #:ALJ 274 16-03-001 Operator ID#:15007meet the OQ is the responsibility ofPG&E to ensurethattraining ofallpersonnelperformingOQtasks are donein a manner thatensures adequate performanceandis acceptable to PG& proximity clearances tookplace at various times between 2011andApril 21, 2015 (the time of the meeting with PG&E representatives).

3 Theexact number and dates ofthe proximity clearanceswith personnel means individuals from theprimary contractor and any subcontractors who performed proximity clearances during the timeframe noted in its response to the Notice of Proposed Violation (NOPV), stated: The PG&E cross bore program performs proximity clearances to identifythe approximate location of PG&E s distribution gas lines in relation tosewer lines aspart of the assessments being performed for the programrather than in preparation for excavation as is the case with a non-production task.

4 In the interest of continuous improvement of the CrossBore Program, PG&E will use locate and mark Operator Qualifiedemployees to perform proximity clearances on a going forward , PG&E will revisit the locations that were previouslydetermined not to have a cross bore through a proximity clearance andperform the proximity clearance with locate andmark Operator Qualifiedpersonnel. ENCLOSURES:The following enclosures were used to establish the findings of 1 Whistleblower InvestigationReport(REDACTED),dated3/1 2 SEDPG&E s Cross Bore Inspection Program,dated 9/9 PG&ENOPV response, dated10/09/2015 STATEMENT OF FACTS:The above violations were establishedfromthe attachedEnclosure 1 WhistleblowerInvestigationReport (REDACTED).

5 XPublic Utilities CommissionSTATE OF CALIFORNIAC itation Date:March29, 2016 Citation #:ALJ 274 16-03-001 Operator ID#:15007 SED Citation ANALYSISE lement ofSentencing ScheduleStaff FindingNumber of violation (s)and duration ofviolation(s)System-wide violations ofTitle49 CFR (b)between the time each proximity clearance was performed andApril 21, 2015 (the date of the meetingwith PG&Erepresentatives).Severity of the offense: overall level of riskof violation(s)These violationsdid not createsignificanthazardous conditions sincePG&E did notaccept these proximity cross-boreinspections as being system-wide whichresultsin total fine amount of$200,000due to theprogrammaticnature of the conduct of the utility before, during,and after the offenseThe utility is being cooperative and hasundertaken corrective occurrence of similar violationsby the utilityN/ASelf-reporting of the violationNoIndication of the violation (s)

6 Being willfulNoActions taken by the utility to address theviolationPG&E has accepted none of the proximityclearancesperformed by the primarycontractor as being safety related conditionPotential cross-bores insewerand stormdrainlinesFinancial resources of the Million customers, $715 MillionRevenue requirementThe totality ofthe circumstancesThe cross-bore inspection program wasdone in response to the DistributionIntegrity ManagementProgram(DIMP)XPublic Utilities CommissionSTATE OF CALIFORNIAC itation Date:March29, 2016 Citation #:ALJ 274 16-03-001 Operator ID#:15007 Rulein 2011to reduce risk on PG&E ssystem due to potentialcross-bores.

7 Theproximity clearances were done wherevisualinspection of the sewer lines wasdifficult factors deemed relevant by SEDThe utilitywascooperative with staff;thecalculated Citation amount is based on theprogrammatic nature of the Citation Taking All OfTheseFactors Into Account$200, Utilities CommissionSTATE OF CALIFORNIAC itation Date:March29, 2016 Citation #:ALJ 274 16-03-001 Operator ID#:15007 RESPONSE:Respondent is hereby called upon to provide a response to this Citationby:5:00 PM (PST) onApril 8, way of such response,Respondent,within 10 calendar days,mayeither.

8 (1)Correct the violationswith any immediate safety hazard requiring immediatecorrectionas soon as feasible, and/or submit a Compliance Plan to the Director ofSED for correcting those violations requiring more than 10 days to correct,andpay afine pursuant to Pub. Util. Code 2107. (Submit a check payable to CaliforniaPublicUtilities Commissionusing the attachedCitation Payment payment,the fine will be deposited in the State Treasury to the credit of the General Fundandthis Citation will become final).

9 Or(2)Confirm that the violation(s) noted in this Citation have been corrected and/orotherwise do not present an on-going safety hazard to the Operator s employees andthe general Public , and/or submit a Compliance Plan to the Director of SED forcorrecting those violations requiring more than 10 days to correct,andcontest thiscitation by completing and submitting aNotice of Appeal Form. Please see theattached document, Directions For Submitting An AppealTo A Citation IssuedPursuant To Resolution ALJ-274 for information on the appeals process and theattached Notice of Appeal Form.

10 Also attached is a copy of Resolution ALJ-299includingAppendices A and s failure to provide a response, as noted above, within 10 calendar daysfrom the date the Citation is served, will place Respondent in default of the Citation andwill result in forfeiture oftheRespondent s rights to appeal the Citation . A late paymentwill be subject to a penalty of 10% per year, compounded daily and to be assessedbeginning the calendar day following the payment-due date. TheCommission may takeadditional action to recover any unpaid fine and ensure compliance with applicablestatutes and Commission TO Public AGENCIES.