Press Release

PUC To Weigh Comments on $75,000 Civil Penalty for PECO Energy Co.

Published on 5/24/2012

Filed under: Gas

HARRISBURG – The Pennsylvania Public Utility Commission (PUC) today issued for comment a $75,000 civil penalty with PECO Energy Co. as a result of violations to the Public Utility Code and the Code of Federal Regulations.

The Commission voted 5-0 to adopt the motion of Commissioner Wayne E. Gardner, increasing the civil penalty to $75,000, which stemmed from an investigation launched by the Commission as a result of an explosion and house fire in Swedeland, Montgomery County.

In the investigation, staff determined that the explosion was caused by a crack, which initiated the failure of a four-inch cast iron natural gas pipeline main serving structures in the vicinity.  The gas main was near the joint of the service line in the rear of the residence sending gas laterally and through the foundation wall of the crawl space, resulting in the fire.

The PUC’s Prosecutory Staff alleges that PECO failed to properly prepare and/or follow the necessary written procedures that are required to be set forth in a procedural manual for responding to an incident, including operations, maintenance and emergencies; failed to follow its procedures for identifying and classifying leak migration; failed to monitor for external corrosion; failed to document actions taken during the incident and failed to furnish and maintain adequate, efficient, safe and reasonable service and facilities in the provision of gas service.

As a result of the motion, the company is to:

• retrain its emergency response crews to maintain written records during an incident and to perform additional bar hole testing to determine whether natural gas is migrating as a result of pipeline failure;
• retrain its emergency response crews to assume in response to an incident where there is suspicion of an explosion, that natural gas is the primary source of the incident until proven otherwise and to proceed accordingly; and
• pay a civil penalty amount of $75,000 to resolve the alleged violations uncovered by this informal investigation.  Under the Commission’s proposed settlement, the penalty would have been for $35,000.

The civil penalty cannot be recovered from consumers.

Interested parties have 20 days to comment.

PECO provides natural gas service to approximately 480,000 customers in Bucks, Chester, Delaware and Montgomery 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 Web site at www.puc.state.pa.us.

Docket Number M-2012-2205782

Contact:

• Press Secretary
  717-787-5722