Public hearings on the 2010 San Bruno gas pipeline blast that killed eight people and leveled a Bay Area neighborhood have been suspended to allow regulators and  Pacific Gas & Electric (PG&E) to negotiate terms of a settlement over fines that could run as high as $200 million—behind closed doors.

Critics of  pipeline owner PG&E’s role in the blast and the aftermath objected to the decision Thursday by two Public Utilities Commission (PUC) administrative judges, claiming that private talks might exclude relevant information and be more susceptible to political pressure. Victims of the blast made emotional pleas to the judges not to halt the hearings.

State regulators looking into the San Bruno blast have accused the utility of lousy record keeping, failure to do required tests, control room breakdowns, a crummy emergency response and a culture that “emphasized profits over safety.”

PG&E witnesses have already presented written testimony at the hearings, which has two more weeks to go, but have not been cross-examined. The PUC’s Division of Ratepayer Advocates objected to the hearing delay.

The judges said that the hearings might resume November 1 if no deal is reached.

The next day, another administrative judge issued a draft proposal to the PUC that ratepayers pick up 55% of the $2.2 billion tab for testing and replacing pipelines in the area. Shareholders would pay the rest.

PG&E has proposed that ratepayers pick up 85% of the costs and PG&E critics have insisted that the utility pay for it all. The company has said in the past that costs could run as high as $5 billion. The utility plans tests on 783 miles of pipeline and replacement of another 186 miles. It also plans to execute other safety measures, including installation of 228 automated shutoff valves on gas lines and modification of 199 miles of pipe to allow inspections by in-line tools called smart pigs.

The five-member PUC board will ultimately decide rule on the fines and the division of financial responsibility for upgrading the system.

–Ken Broder

To Learn More:

Judges Halt PG&E Blast Hearings (by Jaxon Van Derbeken, San Francisco Chronicle)

Penalty Negotiations on, San Bruno Public Hearings off, Judges Order (by Joshua Melvin, Bay Area Newsgroup)

CPUC Gives Initial Nod to $2.2B Gas Safety Plan (by Garance Burke, Associated Press)

Big Bill to Customers for PG&E Upgrades (by Jaxon Van Derbeken, San Francisco Chronicle)

PG&E Says Its Shoddy Gas Lines Are Dangerous, Wants Big Rate Increase (by Ken Broder, AllGov California)