Press Release

PUC Weighs $5,000 Settlement with UGI over Lancaster Natural Gas Explosion

Published on 12/4/2008

Filed under: Gas

HARRISBURG – The Pennsylvania Public Utility Commission (PUC) today issued for comment a settlement that includes a $5,000 civil penalty after a natural gas explosion in Lancaster.

The Commission voted 5-0 to approve the settlement. Neither the civil penalty nor any other costs associated with the terms of the settlement may be recovered from ratepayers. Also included under the settlement, UGI will:

• Replace about 300 cell phones with intrinsically safe cell phones over the a three-year phase-in period;
• Provide gas safety education programs to fourth and fifth graders in elementary and middle schools in its service territory;
• Revise its dispatching procedures for emergencies;
• Review of its equipment issued to UGI emergency responders; and
• Meet with all 911 centers in the service territory to discuss emergency procedures;

The settlement followed a formal investigation by the PUC’s independent Prosecutory Staff into a March 26, 2004 gas explosion in the 400 block of Queen Street, Lancaster, that injured a UGI employee. While the employee was investigating the basement of a residence, an explosion occurred. Although, the gas explosion did not cause a fire, portions of the basement were scorched and the UGI employee suffered burns to his hands and face.

In reviewing the company’s actions in relation to the incident, the Prosecutory Staff alleged that UGI violated portions of the state Public Utility Code and federal regulations on pipeline safety.

Comments from any interested party are due within 20 days of the entry date of the Order.

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.

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Docket No. C-20066664

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• Press Secretary
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