Press Release

PUC Weighs $130,000 Settlement with Equitable Gas Related to Safety Violations

Published on 10/8/2009

Filed under: Gas

HARRISBURG – The Pennsylvania Public Utility Commission (PUC) today issued for comment a settlement with Equitable Gas Co. related to allegations of multiple violations of federal and state gas pipeline safety regulations.

The Commission voted 3-2 to approve a motion by Commissioner Wayne E. Gardner, which modifies the settlement, and requires the company to pay a civil penalty of $65,000 and make a $65,000 contribution to a low-income program. Commission Vice Chairman Tyrone J. Christy and Commissioner Kim Pizzingrilli issued a dissenting statement.

The settlement also includes 14 steps the company must take to improve its practices and procedures related to safety. Interested parties have 20 days after the Order is entered to file comments.  Some of the provisions included in the settlement are:

Payment by Equitable of $65,000 to the company’s Hardship Repair Fund, which helps low-income customers with house line, service line and furnace repairs and replacement. The money may not be recovered from ratepayers;

Implementation of acceptable and appropriate written procedures for preventative and mitigative measures that need to be conducted on various lines;

Retraining all employees and contractors in the requirements of the new procedures;

Updating company distribution system maps to ensure accuracy; and

Improving procedures to ensure all company-owned gas lines are properly marked in response to requests from the Pennsylvania One Call System.

The settlement follows an investigation by the PUC’s independent Prosecutory Staff into three incidents where PUC gas safety inspectors found that Equitable did not have written procedures for preventive and mitigative measures to prevent damage to certain transmission pipelines and failed to follow certain required safety procedures.

In reviewing the company’s actions related to the incidents, the Prosecutory Staff alleged that Equitable violated portions of the state Public Utility Code and federal regulations on pipeline safety.  Equitable does not admit to any wrong doing under the settlement.

Equitable Gas Company provides natural gas service to approximately 275,000 homes, businesses and industrial organizations in southwestern Pennsylvania and north central West Virginia.

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 M-2009-1505395

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