NEW YORK (TheStreet) -- PG&E (PCG) was gaining 1.2% to $47.05 Tuesday after California Public Utilities Commission judges issued a $1.4 billion penalty for the 2010 natural gas pipeline explosion in San Bruno.
The figure would be the largest safety-related penalty issued by the California Public Utilities Commission. The number is lower than a staff recommendation of $2.25 billion in penalties for the explosion that killed eight people and destroyed 38 homes, according to Bloomberg.
The California Public Utilities Commission's five commissioners still have to approve the proposal for the fine, and can offer alternatives if they choose. PG&E has the option to appeal the ruling.
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TheStreet Ratings team rates PG&E CORP as a Buy with a ratings score of B+. TheStreet Ratings Team has this to say about their recommendation:
"We rate PG&E CORP (PCG) a BUY. This is driven by a number of strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth and increase in stock price during the past year. We feel these strengths outweigh the fact that the company has had sub par growth in net income."
Highlights from the analysis by TheStreet Ratings Team goes as follows: