PG&E is facing a dozen criminal charges related to the deadly San Bruno explosion in 2010.
The indictment was handed down Tuesday by a federal grand jury in San Francisco.
PG&E is being accused of "knowingly and willfully" violating requirements of the Natural Gas Pipeline Safety Act of 1968.
PG&E Corporation -- parent company of PG&E -- said the indictment was without merit.
But San Bruno City Manager Connie Jackson says the victims deserve justice.
"We hope that the criminal indictment will be one of the steps toward full and final closure for the victims in San Bruno -- their families, their loved ones," Jackson said.
The September 2010 explosion of a natural gas pipeline killed eight people and hurt 58 others.