CA Pub Util Code Section 959

(a)

A gas corporation shall not recover any fine or penalty in any rate approved by the commission.

(b)

Each gas corporation shall demonstrate to the satisfaction of the commission, in its general rate case proceeding, that the requested revenue requirements will be sufficient to enable the gas corporation to fund those projects and activities necessary to maintain safe and reliable service and to meet federal and state safety requirements applicable to its gas plant, in a cost-effective manner.