( CNN ) The California Public Utilities Commission on Thursday said it is ordering Pacific Gas & Electric Co. to pay a record $ 1.6 billion penalty for unsafe operation of its gas transmission system , including the pipeline rupture that killed eight people in San Bruno in September 2010 . Most of the penalty amounts to forced spending on improving pipeline safety . Of the $ 1.6 billion , $ 850 million will go to `` gas transmission pipeline safety infrastructure improvements , '' the commission said . Another $ 50 million will go toward `` other remedies to enhance pipeline safety , '' according to the commission . `` PG & E failed to uphold the public 's trust , '' commission President Michael Picker said . `` The CPUC failed to keep vigilant . Lives were lost . Numerous people were injured . Homes were destroyed . We must do everything we can to ensure that nothing like this happens again . '' The company 's chief executive officer said in a written statement that PG & E is working to become the safest energy company in the United States . `` Since the 2010 explosion of our natural gas transmission pipeline in San Bruno , we have worked hard to do the right thing for the victims , their families and the community of San Bruno , '' Tony Earley said . `` We are deeply sorry for this tragic event , and we have dedicated ourselves to re-earning the trust of our customers and the communities we serve . The lessons of this tragic event will not be forgotten . '' On September 9 , 2010 , a section of PG & E pipeline exploded in San Bruno , killing eight people and injuring more than 50 others . The blast destroyed 37 homes . PG & E said it has paid more than $ 500 million in claims to the victims and victims ' families in San Bruno , which is just south of San Francisco . The company also said it has already replaced more than 800 miles of pipe , installed new gas leak technology and implemented nine of 12 recommendations from the National Transportation Safety Board . According to its website , PG & E has 5.4 million electric customers and 4.3 million natural gas customers . The Los Angeles Times reported the previous record penalty was a $ 146 million penalty against Southern California Edison Company in 2008 for falsifying customer and worker safety data . CNN 's Jason Hanna contributed to this report .
The penalty is 8 times the previous record , according to a newspaper report . Utility commission to force Pacific Gas & Electric Co. to make infrastructure improvements . Company apologizes for explosion that killed more than 10 , says it is using lessons learned to improve safety .