US energy supplier Pacific Gas and Electric was charged on Tuesday with 12 safety violations linked to a fatal 2010 pipeline explosion in the San Francisco Bay Area.

The indictment charged the utility with 12 felony violations of federal pipeline safety laws, which could carry a total possible fine of $6 million (£3.6m), or more if the court decides it benefited financially from the disaster.

US prosecutors allege that PG&E knowingly relied on erroneous and incomplete information when assessing the safety of the pipeline that eventually ruptured and blew out a fireball that levelled 38 homes in San Bruno.

Nearly four years later the neighbourhood, where eight people were killed and dozens injured, is still recovering.

The company is also accused of failing to act on threats in its pipeline system even after the problems were identified by its own inspectors.

About a year after the explosion investigators from the National Transportation Safety Board found that these lapses led to the blast.

The board characterised the explosion as an “organisational incident,” not a simple mechanical failure.

Tuesday’s indictment was met with applause by San Bruno officials.

“The indictment validates the city’s position that there was gross mismanagement and negligence,” said City Manager Connie Jackson.

“What San Bruno hopes is that the criminal indictment brings a measure of justice and closure for the citizens and victims.”

PG&E chairman Tony Earley said the company was deeply sorry.

But parent company PG&E Corp claimed that the “charges have no merit.”