Press Release

PUC Finalizes Settlement $75,000 Civil Penalty for PECO Energy Co.

Published on 11/8/2012

Filed under: Gas

HARRISBURG – The Pennsylvania Public Utility Commission (PUC or Commission) today approved a settlement with PECO Energy Co. (PECO or company), providing for a $75,000 civil penalty.

The Commission voted 5-0 to approve the settlement, which stemmed from an investigation launched by the Commission as a result of a 2009 explosion and house fire in Swedeland, Montgomery County.

As a result of 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 alleged that PECO failed to properly prepare and/or follow 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 part of the settlement, 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 when responding to an incident where there is suspicion of an explosion that natural gas is the primary source of the incident until proven otherwise; and
• Pay a civil penalty amount of $75,000, which cannot be recovered from consumers.

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, video and audio of select Commission proceedings or more information about the PUC, visit our website at www.puc.pa.gov.

Docket Number M-2012-2205782

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• Press Secretary
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