Press Release
PUC Weighs $1 Million Settlement with UGI Penn Natural Gas Over Handling of Natural Gas Leaks
Published on 8/29/2013
Filed under: Gas
HARRISBURG – The Pennsylvania Public Utility Commission (PUC) today issued for comment a proposed $1 million settlement with UGI Penn Natural Gas (UGI-PNG) following an informal investigation into the company’s classification and repair of some leaks.
The Commission voted 5-0 to issue for comment the proposed settlement between UGI-PNG and the PUC’s independent Bureau of Investigation & Enforcement (I&E). Interested parties have 20 days to file comments on the settlement. Instructions on how to file comments are contained in the Commission’s Order.
Other provisions in the settlement include that the company will:
- Pay a $1 million civil penalty, which cannot be recovered from ratepayers;
- Implement computer recording and tracking of leak survey results;
- Conduct a third-party audit of certain leaks that addresses accuracy of characterization and quality of repair;
- Hire a third party to conduct a management audit; and
- Provide additional information on high-pressure distribution pipelines.
I&E began an informal investigation following gas leaks on April 4 and April 5, 2012, on Route 309 in Wilkes-Barre. UGI-PNG initially performed a temporary repair and a permanent repair was completed on May 30, 2012.
During the informal investigation, I&E looked into UGI-PNG’s leak classifications, surveys and compliance with state and federal regulations as well as UGI-PNG’s compliance with pipeline repair practices. Based on its investigation, I&E alleged that UGI-PNG was not compliant with state and federal regulations. Under the settlement, UGI-PNG does not admit any wrongdoing.
The Pennsylvania Public Utility Commission balances the needs of consumers and utilities; ensures safe and reliable utility service at reasonable rates; protects the public interest; educates consumers to make independent and informed utility choices; furthers economic development; and fosters new technologies and competitive markets in an environmentally sound manner.
For recent news releases and video of select Commission proceedings or more information about the PUC, visit our website at www.puc.pa.gov. Follow the PUC on Twitter – @PA_PUC for all things utility. “Like” PAPowerSwitch on Facebook for easy access to information on electric shopping.
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Docket No. M-2013-2338981
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