Press Release

PUC Finalizes $1 Million Settlement with UGI Penn Natural Gas Over Handling of Natural Gas Leaks

Published on 9/26/2013

Filed under: Gas

HARRISBURG – The Pennsylvania Public Utility Commission (PUC) today finalized a $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 approve the settlement between UGI-PNG and the PUC’s independent Bureau of Investigation & Enforcement (I&E). Under the settlement, 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.

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Docket No. M-2013-2338981

Contact:

• Press Secretary
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