X Public Utilities Commission Citation Date: March 29 ...

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. 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.

2 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).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.

3 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).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).

4 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) 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.

5 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:(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.

6 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);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.

7 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:As soon as is reasonable and necessary, andno later than 10 calendar daysafter service ofthe Citation is effected, Respondent must provide a notification to the City Manager or similarlocal agency authority in the city and county wherethecitation is 10 days ofproviding such notification, Respondent must serve an affidavit to the Director of SED,attesting that the local authorities have been notified; the date(s) forwhen notification wasprovided.

8 And the name(s) and contact information for each local authority so Utilities CommissionSTATE OF CALIFORNIAC itation Date: March29, 2016 Citation #:ALJ 274 16-03-001 Operator ID#:15007 The CPUC expects Operators to take actions, as soon as feasible , to correct, mitigate, orotherwise make safe all violations regardlessof the Operator s intentions to accept orappeal the violation(s) noted in the and Enforcement DivisionCalifornia Public Utilities Commission505 Van Ness AvenueSan Francisco, CA Utilities CommissionSTATE OF CALIFORNIAC itation Date: March29, 2016 Citation #:ALJ 274 16-03-001 Operator ID#:15007 Citation PAYMENT FORMI (we) _____ hereby agree to comply with this citationdated _____, and have corrected/mitigated the violation(s)noted in the Citation on _____ and no later than _____,all work to make permanent corrections to any mitigated, or otherwise remainingconcernsrelated to the violation(s) will be completed as noted in the Compliance Planwe have submitted to the Director of SED and, herewith, pay a fine in the amount of $_____ as included in the of Gas Corporation sTreasurer,Chief Financial Officer, or President/CEO, ordelegated Officer thereof_____(Signature)(Date)_____(Print ed Name and Title)Payment with a check must be made payable to theand sent to the below address.

9 Please include the Citation number onthe memorandum line of the check to ensure your payment is properly Public Utilities CommissionAttn: Fiscal Office505 Van Ness AvenueSan Francisco, CA 94102-3298 NOTE: A copy of the completed Citation Payment Form must be sent to the Director of theSafety and Enforcement Division, via email orregular mail, to the addresses provided on Utilities CommissionSTATE OF CALIFORNIAC itation Date: March29, 2016 Citation #:ALJ 274 16-03-001 Operator ID#:15007 DIRECTIONS FOR SUBMITTING AN APPEAL TO A CITATIONISSUED PURSUANT TO RESOLUTION ALJ-274 Within 10 calendar days of the Respondent being served with a, Respondent mayappeal the Citation . Beyond 10 calendar days of being served with the Citation ,Respondent is in default and, as a result, is considered as having forfeited rights toappeal the Citation .

10 The Respondent must still correct the violation(s) as feasibleunless,within 10 calendar days from the date of service of the Citation ,theRespondent submits to the Director ofSED, a Compliance Plan that provides adetailed description of when the violation(s) will be corrected, themethodology to beutilized, and a statement, supported by an affidavit from the Gas Corporation s ChiefExecutive Officer, that in the Respondent s best judgment, the time necessary tocorrect the violation(s) will not affect the integrity of the operating system or undulyendanger the appeal the Citation ,Appellant must file a Notice of Appeal (including a completedtitle page complying with Rule of the Commission s Rules of Practice andProcedure, and attached Notice of Appeal Form)along with copies of any materialstheAppellantwants to provide in support of its appealwith the Commission s DocketOfficeandmust be served, at a minimum, on1)The Chief Administrative Law Judge (with an electronic copy Director of Safety and Enforcement Division3)TheExecutive Director4)General Counsel5)TheDirector of the Division of Ratepayer Advocateswithin 10calendar days of the date on which the Appellant is served the Citationatthe address listed below.