PG&E Update: Replacing 1200 Miles of Gas Lines including Bay Area
If you haven't caught it in the news yet, PG&E has had their hands full lately. Earlier this month, another gas pipe sparked a fire, this time close to home in the Bay Area, at a Cupertino Condo complex. This particular instance was a leaky plastic gas pipe, part of a 1231 Mile plastic pipeline spread across California. Below are some notes I picked up:
- PG&E will start replacement of these pipes in November in Cupertino and Roseville (where another pipe burst)
- Total 1200 Mile Job will cost at least $1 Billion and will be completed over the next few years (maybe 10 years).
- Plastic pipes were produced prior to 1973 and are pre-disposed to cracking
- PG&E will ask for a rate increase for consumers to pay for the cost!
- PG&E is not required to replace these lines
- PG&E will be the 1st in the nation to replace aged pipelines
So, the question I have for our readers is this: Should the California Tax payers be liable for incurring the cost to replace these lines? I'm not sure what the lifespan of gas lines are, but it seems that we paid for them once to be installed, so should part of the monies be covered by the manufacturer or PG&E? Will developers be required to participate in a line-replacement fund surrounding new projects?
As these re-construction projects echo through California, I'd be curious to see how it affects our local real estate in the Bay Area. Will the California Utilities Commission think of other ways to pay for this?
I think we all can agree that fixing these pipelines is a lasting solution for the future generations, but at what cost does it become burdensome to the California Tax Payer?
Your thoughts and comments are always appreciated. In a future article, we will look at the land and building impacts of the potential BART line drilling through Downtown San Jose (underground).