Press Release

PUC Weighs $17,500 Settlement for UGI over Outage, Safety Concerns with Lancaster County Propane System

Published on 8/18/2010

Filed under: Gas

HARRISBURG – The Pennsylvania Public Utility Commission (PUC) today issued for comment a proposed settlement with UGI Utilities Inc. that includes a $17,500 civil penalty for allegedly violating the Public Utility Code or Commission regulations.

The Commission voted 5-0 to issue the settlement for comment. Commission Vice Chairman Tyrone J. Christy issued a statement.

UGI owned and operated a propane gas distribution system that served the Farmington Way residential subdivision in Lititiz, Lancaster County. Following a complaint letter raising concerns about a September 2009 outage and location of the propane tanks, the Commission’s independent Prosecutory Staff began an informal investigation. In reviewing the company’s actions in relation to the outage and complaint, the Prosecutory Staff alleged the following violations by the company for failing to:

• Monitor the propane gas supplies serving its customers;
• Furnish and maintain adequate, efficient, safe and reasonable service; and
• Provide correct information on its emergency placard.

Under the terms of the settlement, the company will:

• Not recover the civil penalty from ratepayers;
• Revise internal operating procedures with regard to the monitoring of propane levels in propane tanks servicing its gas beyond the mains customers to avoid further outages;
• Verify the emergency telephone number on the fence placards has been corrected; and
• Convert the Farmington Way subdivision from propane to natural gas (completed).

Interested parties have 20 days to file comments with the Commission.

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-2010-2138591

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• Press Secretary
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