SAN ANTONIO, Texas, June 30, 2017 -- Valero Refining Company-California (Valero), which owns and operates the Benicia, California, refinery, filed a lawsuit today against California's largest utility company, Pacific Gas & Electric Company (PG&E), in the Eastern District of California after PG&E shut off all electricity to the refinery on May 5, 2017. Valero is seeking damages in excess of $75 million for damage to critical refinery equipment, lost revenue and other damages resulting from the emergency shutdown.
PG&E provides both the primary and backup electrical power for Valero's refinery. Valero contracted with PG&E for the allocation of a second redundant power line which serves as the refinery's backup power source and is intended to prevent unplanned power interruptions. The lawsuit alleges that PG&E breached its contract with Valero when it caused both the primary and backup power supplies to the refinery to go down simultaneously without any prior notice. Valero's lawsuit further contends that PG&E negligently designed, operated and maintained its electrical system, resulting in the unexpected and unplanned power outage.
The power outage caused an emergency shutdown of the entire refinery, resulting in extensive flaring, emissions, and significant damage to the refinery equipment. Valero's emergency shutdown and safety systems worked properly and averted potentially severe consequences. Due to the damage caused by the abrupt loss of power, the refinery remained out of service for more than a month, causing substantial economic damages to Valero.
Given PG&E's track record of poor reliability and safety problems in California, it is crucial that PG&E be held accountable for its actions. PG&E must provide reliable electrical utility services to all PG&E customers throughout California, especially to critical infrastructure such as refineries. PG&E must take responsibility for the damages it caused to ensure reckless power outages with potentially significant consequences never happen again.
About Valero
Valero Energy Corporation, through its subsidiaries, is an international manufacturer and marketer of transportation fuels and other petrochemical products. Valero, a Fortune 50 company based in San Antonio, Texas, with approximately 10,000 employees, is an independent petroleum refiner and ethanol producer, and its assets include 15 petroleum refineries with a combined throughput capacity of approximately 3.1 million barrels per day and 11 ethanol plants with a combined production capacity of 1.4 billion gallons per year. The petroleum refineries are located in the United States (U.S.), Canada and the United Kingdom (U.K.), and the ethanol plants are located in the Mid-Continent region of the U.S. In addition, Valero owns the 2 percent general partner interest and a majority limited partner interest in Valero Energy Partners LP, a midstream master limited partnership. Valero sells its products in both the wholesale rack and bulk markets, and approximately 7,400 outlets carry Valero's brand names in the U.S., Canada, the U.K. and Ireland. Please visit www.valero.com for more information.
Valero Contacts
Investors:
John Locke, Vice President – Investor Relations, 210-345-3077
Karen Ngo, Senior Manager – Investor Relations, 210-345-4574
Tom Mahrer, Manager – Investor Relations, 210-345-1953
Media:
Lillian Riojas, Director – Media Relations and Communications, 210-345-5002