The money will be used to establish a nonprofit organization to help the community recover from the blast, which killed eight people and destroyed 38 homes on Sept. 9, 2010.
The utility previously set up a $100 million fund to support emergency needs in the aftermath of the explosion.
The National Transportation Safety Board (NTSB) placed the blame on Pacific Gas and Electric Company for the blast. Escaping gas fed a pillar of flame 300 feet tall for more than 90 minutes before workers were able to manually close valves that cut off gas to the ruptured pipeline.
The explosion was the nation's most significant pipeline accident in the last decade.
The Associated Press contributed to this report.