Valero Refining Company filed a lawsuit Friday against Pacific Gas & Electric Company (PG&E) for the 18-minute shutdown of their Benicia refinery. The Valero Refining Company accuses PG&E of shutting off the electricity to the refinery, which resulted in a refinery shutdown on May 5.
When the power came back on, flaring at the refinery led to large plumes of black smoke being released, a lockdown being issued in the Industrial Park and two nearby elementary schools establishing shelters in place.
Citing impairments to critical refinery equipment, loss of revenue and additional damages from the emergency shutdown, Valero will be seeking damages in excess of $75 million.
According to the company, Valero expected their second redundant power line– which serves as the refinery’s backup power source to prevent unplanned outages– would work due to a contract the company holds with PG&E for the second redundant power line. Valero claimed PG&E breeched their contract with the company and indicated this caused the primary and backup power supplies to the refinery to go down simultaneously. The company also filed its lawsuit due to allegedly negligently designed operation and maintenance from PG&E of its electrical system which it also alleges brought about the unplanned shutdown.
“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,” the company said in a statement. “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.”
PG&E officials say the company is already looking into the cause of the incident.
“The safety of our customers, employees and the general public is always our top priority,” PG&E spokesperson Deanna Contreras said. “We have engaged an outside, third party engineering firm to conduct a review of the 18-minute power outage on May 5. We continue to partner with Valero and the City of Benicia to prevent similar power disruptions.”
The Bay Area Air Quality Management District is still investigating the continued flareup reports submitted by Valero.

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