By Rebecca Smith 

PG&E Corp. will offer a $250,000 reward for information resulting in the arrest and conviction of people who attacked its Metcalf transmission substation near San Jose, Calif., last year.

The company said it would announce the size of the reward later Thursday, almost a year after gunmen knocked the substation out of commission.

As The Wall Street Journal reported earlier this year, the attack began on April 16, 2013, with the slashing of fiber optic cables in underground vaults near the substation that were owned by AT&T and Level 3 Communications, which disrupted local phone and data communications.

A few minutes later, gunmen opened fire on the substation, seriously damaging 17 large transformers that help send electricity to Silicon Valley. It took the utility a month to make repairs, at a cost of about $16 million.

AT&T immediately offered a reward of $250,000 for information leading to arrests.

PG&E initially played down the seriousness of the attack, referring to it as an act of vandalism, because executives feared that publicity might result in copycat attacks.

The utility, which serves most of northern California, said Thursday it has been cooperating with a probe by the Federal Bureau of Investigation. It also said it intends to spend $100 million on security upgrades to its substations.

The Metcalf substation had cameras that were pointed down a chain-link fence that surrounded the equipment yard containing the transformers. But the picture quality was poor and it failed to capture images of the gunmen, who stood outside the fence line and fired rounds into the substation from a pasture.

Utilities are looking at physical security in a new light, as a result of the Metcalf attack. The Federal Energy Regulatory Commission has said it would enact new rules for physical security of key substations this summer. Utilities are expected to develop security plans for a handful of the most important substations that will include a review by independent experts to make sure security measures are adequate.

Write to Rebecca Smith at rebecca.smith@wsj.com

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