An investigation into the 2010 deadly gas pipeline explosion in the San Francisco-area neighborhood of San Bruno has found that Pacific Gas & Electric Co. (PG&E) should pay a record $2.25 billion dollar for its negligence in the incident.

On Monday the California Public Utilities Commission's report found that the company should dig deep into its pockets for a blast that killed 8 people and destroyed 30 homes. The faulty pipeline was 54 years old and desperately needed improvements, but a "litany" of oversights prevented that from happening. If approved, the fine would be the largest amount ever assessed by a state regulator.

"They blew up our city. Eight people were killed. A whole neighborhood destroyed," said San Bruno Mayor Jim Ruane. "PG&E has admitted not a single, substantive violation of law in the face of thousands of charges violations of state and federal law."

The report also noted that the actual fine should be much greater than what they are reccommending. The commission decided against a higher amount because such a move would put PG&E out of business and become an inconvenience for many citizens.

"Imposing a fine for each violation for each ongoing day would result in tens of billions of dollars of fines, which is more than PG&E's net worth," the report said. "Consequently, CPSD recognizes that there is a limit on how much PG&E can afford to pay, because PG&E needs to retain its creditworthiness in order to be able to pay for its improvements in the safety of its facilities, as well as to procure natural gas and electric power."

Those at PG&E do not hold a similar view of the fine. They believe that all it will do is make it harder for the San Francisco area to get back on track. PG&E plans on filing its own proposal for how much they should pay later this month.

"I am deeply concerned than an excessive penalty, such as those proposed, could dramatically set back our efforts to do the right thing by making it harder and more costly to finance the remaining improvements that are needed in our gas system," PG&E Chairman and Chief Executive Tony Earley said.

A decision on the final total that PG&E is expected to pay will be reached sometime this summer. The proceedings promise to be a legal battle worth watching, as the decision could swing hundreds of millions of dollars in either direction. Those opposed to PG&E however, would like the public to know that the company isn't hurting as badly as they claim.

"It's absolutely the amount PG&E should pay for their all their past violations," said Marcel Hawiger, an attorney with the nonprofit Utility Reform Network. "This is a very big penalty, but it's not quite as big as it seems when you account for the tax benefits PG&E would accrue."