Los Angeles ( CNN ) -- Pacific Gas and Electric Company must pay $ 38 million for safety violations in connection with a Christmas Eve 2008 explosion and fire in northern California , officials said . The penalty is the largest safety violation fine for a utility in California history , said Andrew Kotch , spokesman for the California Public Utilities Commission . The fine was larger than the $ 26 million recommended to an administrative law judge , but the judge imposed the bigger fine , which was approved Thursday by the commission , officials said . The explosion and fire were caused by a natural gas leak . They destroyed a house in Rancho Cordova , California , near Sacramento , authorities said . One person died and five other people , including a utility worker and a firefighter , were injured . The commission said PG & E committed safety violations that included not following its internal procedures after discovering the installation of a gas pipe with a wall thickness below specifications ; not administering drug and alcohol tests after the Rancho Cordova explosion to all employees `` whose performance on December 24 , 2008 , under the circumstances presented , could not be completely discounted as a contributing factor to the accident '' ; and making an `` unreasonably delayed and not effective '' response to a neighborhood resident 's phone call about an outdoor gas leak odor . `` This decision sends a signal that California is taking a firm stand on integrity and safety in its gas distribution infrastructure , '' Timothy Alan Simon , the commissioner assigned in this proceeding , said in a statement . PG & E ca n't raise rates on customers to recover any portion of the penalty and other costs associated with the commission 's decision , and the fine payment will be turned over to the state 's general fund , the commission said .
NEW : The fine is largest ever for safety violations by a utility in California history . The fine against Pacific Gas & Electric is larger than a recommended $ 100 million . PG & E cited safety violations in 2008 explosion in Rancho Cordova . ` ` This decision sends a signal , '' commissioner says .