SAN FRANCISCO, Feb. 3 /PRNewswire-FirstCall/ -- Pacific Gas and Electric Company today issued the following comment on a $295 million legal settlement reached with plaintiffs to resolve litigation related to the use of chromium at three of the company's gas compressor stations in the 1950s, 60s and 70s:
This settlement resolves more than 10 years of litigation and brings closure to substantially all of the outstanding chromium-related claims against PG&E. Importantly, it enables both sides to go forward. As such, we view it as an outcome that is fair and in the best interest of all the parties.
This case resulted from events that occurred many decades ago. In the 1960s, some PG&E workers became aware that chromium was present in groundwater wells near our operations and, regrettably, the facts suggest that they did not share that information with others in the company or the public at the time.
Clearly, this situation should never have happened, and we are sorry that it did. It is not the way we do business, and we believe it would not happen in our company today. In 1987, when we discovered what had happened, we acted immediately to address the problem.
These events have long been public and they are well understood by all the parties. The differences between the plaintiffs and our company in the case centered on opposing views of the health science on chromium. Although the settlement does not resolve these differences, we believe it is best to move forward.
While we don't agree with each others' view, we know that the case has been difficult and emotional for the plaintiffs and their families. We hope this settlement offers them closure and the opportunity to move forward, as it does our company.
With this resolution, we can focus on the future without the uncertainty associated with a protracted legal battle. This outcome provides certainty for our shareholders and allows our team to keep its attention on improving our operations and service.
The financial effects of the settlement will be reflected in PG&E Corporation's 2005 financial results when they are reported on February 17.
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