Press Release

PUC Considers $50,000 Settlement with Columbia Gas after Westmoreland County Natural Gas Explosion

Published on 8/6/2009

Filed under: Gas

HARRISBURG – The Pennsylvania Public Utility Commission (PUC) today voted to issue for comment a settlement with Columbia Gas of Pennsylvania, Inc. (Columbia) that includes a $50,000 monetary penalty after a natural gas explosion at a residence in Mount Pleasant Township, Westmoreland County.  

The Commission voted 3-2 on a motion by Vice Chairman Tyrone J. Christy that redirects the settlement money to the Dollar Energy Fund, which is a non-profit organization that provides financial assistance to customers who are on a low or fixed income.  According to the settlement, which ends an informal investigation into the company’s practices, the money may not be recovered from ratepayers.

“In these increasingly tough economic times I believe directing $50,000 to this program would be a better use of these funds,” said Vice Chairman Christy. “The $50,000 shall be in addition to any support already committed to the Dollar Energy Fund through utility and shareholder contributions.

As part of the settlement, Columbia does not admit to any violations surrounding the incident, which occurred on Aug. 10, 2006.  The incident was caused by a small leak in a gas pipe, which resulted in an explosion and fire, injuring the occupant of the house, who suffered second degree burns. 

In reviewing the company’s actions in relation to the incident, the Commission’s Prosecutory Staff alleged that Columbia violated portions of the state Public Utility Code and federal regulations on pipeline safety including:

• Not having a record of reviews of corrosion indicators performed by a person qualified in pipeline corrosion indicators or corrosion methods;
• Not having record indicating the pipeline was re-evaluated for areas of active corrosion; and
• Company personnel not maintaining records that indicated the pipeline was re-evaluated for areas of active corrosion.

Interested parties have 20 days from entry of the order to file comments with the PUC.

Columbia provides natural gas service to approximately 373,000 residential and 38,000 commercial customers in Adams, Allegheny, Armstrong, Beaver, Bedford, Butler, Centre, Clarion, Crawford, Elk, Fayette, Franklin, Fulton, Greene, Indiana, Jefferson, Lawrence, McKean, Mercer, Somerset, Venango, Warren, Washington, Westmoreland and York counties.

The Pennsylvania Public Utility Commission balances the needs of consumers and utilities to ensure safe and reliable utility service at reasonable rates; protect the public interest; educate consumers to make independent and informed utility choices; further economic development; and foster new technologies and competitive markets in an environmentally sound manner.

For recent news releases, audio of select Commission proceedings or more information about the PUC, visit our website at www.puc.state.pa.us.

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Docket Number C-20077249

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