Press Release

PUC Approves Settlement with PECO in 2014 Coatesville House Explosion; Includes $6.2 Million in Safety Enhancements and Civil Penalties

Published on 10/27/2016

Filed under: Gas

 The Pennsylvania Public Utility Commission (PUC) today approved a settlement with PECO Energy Company (PECO) that included $5.3 million in gas safety enhancements and a $900,000 civil penalty, which stemmed from an investigation into a July 17, 2014, house explosion in Coatesville when the company was performing an uprating project on natural gas lines.

 The Commission voted 5-0 to approve the settlement which, in addition to the civil penalty, included significant annual investments by the company related to the development of a system-wide gas mapping plan over the next 10 to 20 years, camera inspections on gas mains and service lines, changes to the company’s practices and procedures when conducting air pressure conversions, and enhanced personnel training.  Civil penalties cannot be recovered from ratepayers and are paid to the state’s general fund.

 “I believe that the work which PECO will undertake as a result of this settlement is critical for public safety,” PUC Chairman Gladys M. Brown said in a prepared statement.  “Because this work is so essential, I do not understand why it should take up to 20 years to re-map the service territory.  I urge PECO to narrow this timeline and carry out this work as swiftly as possible.”

 New investments by PECO will facilitate the following corrective actions:

• Development of a $3 million gas mapping plan which will allow it to map and locate its facilities with sub-foot accuracy;
• Provide an additional $2.3 million on related infrastructure improvements;
• Revise and update the process for pressure conversions to require camera inspections to confirm/verify the physical condition of all mains and service lines;
• Revise the company’s training manual for pressure conversions;
• Enhance training field personnel on the new manual; and
• Provide progress reports and evidence to the Commission’s Gas Safety Division that proper procedures are in place and it has the ability to perform pressure conversions in a safe manner.

 According to the complaint filed by the PUC’s independent Bureau of Investigation and Enforcement (I&E), the explosion occurred while PECO was performing an uprating project on the premises, and was due to excessive pressure being introduced into the house gas line, causing it to fail and allowing an escape of gas which subsequently ignited.  Furthermore, in its complaint I&E alleges that PECO violated certain provisions of the Public Utility Code as well as certain state and federal regulations by failing to use reasonable effort to protect the public by, among other things, not conducting a leak survey of gas mains and services; not using an updated map in performing the project; not installing and testing a service regulator; and not following its written procedures for conducting operations and maintenance activities.

 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.: C-2015-2479970

Contact:

• David Hixson
  Deputy Press Secretary
  717-772-2766
  dhixson@pa.gov