Press Release

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

Published on 10/21/2010

Filed under: Gas

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

The Commission voted 5-0 to approve the settlement. 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 Lititz, Lancaster County. Following a complaint letter raising concerns about a September 2009 outage and the 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:

• Failure to monitor the propane gas supplies serving its customers;
• Failure to furnish and maintain adequate, efficient, safe and reasonable service; and
• Failure to provide correct information on its emergency placard.

Under the terms of the settlement, the company will:

• Pay a $17,500 civil penalty, which cannot be recovered 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;
• Verify the emergency telephone number on the fence placards has been corrected; and
• Convert the Farmington Way subdivision from propane to natural gas (completed).

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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