Press Release

PUC Weighs $15,000 Settlement with UGI Related to Gas Safety Violations, Lebanon County Fire

Published on 3/25/2010

Filed under: Gas

HARRISBURG – The Pennsylvania Public Utility Commission (PUC) today issued for comment a settlement with UGI Utilities Inc. related to allegations of multiple violations of federal and state gas pipeline safety regulations, which led to a Lebanon County mobile home fire.

The Commission voted 4-0 to issue for comment a settlement with the company requiring UGI to pay a $15,000 civil penalty for violations of the state Public Utility Code and federal regulations on pipeline safety. Chairman James H. Cawley issued a statement. Vice Chairman Tyrone J. Christy also issued a statement.

The settlement follows an investigation into an incident that happened on Aug. 27, 2007, in Campbelltown, in which an excavation contractor struck a service line owned by UGI.  The PUC’s Prosecutory Staff found that the company did not provide for temporary marking of buried pipelines in the area prior to excavation activity and also did not keep maps and records of its distribution system of the incident site.

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

Interested parties have 20 days from the entry of the order to file comments with the Commission. Provisions of the settlement include:

• Paying a $15,000 civil penalty. UGI will not be permitted to recover the money from any future rate proceeding.
• Reviewing and modifying its Damage Prevention Program.
• Reviewing its mapping system to ensure all lines are correctly mapped.

UGI provides natural gas service to about 307,000 natural gas customers in 14 Pennsylvania 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 No. M-2010-2037411

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