Press Release

PUC Fines Peoples Natural Gas for Violations Related to Power Outages

Published on 7/28/2011

Filed under: Gas

HARRISBURG – The Pennsylvania Public Utility Commission (PUC) today finalized a settlement with Peoples Natural Gas Inc. that includes a $20,000 civil penalty for allegedly violating the Public Utility Code or Commission regulations.

The Commission voted 5-0 to approve the settlement, which resulted from an investigation into the company’s handling of a series of residential service outages in Altoona during periods of cold weather.  The Company made 27 service visits to four customers in a residential neighborhood, finding water or ice in the service line that resulted in outages. The PUC’s Prosecutory Staff alleged that although the company took action to remove the water and/or change the meter, it failed to address the underlying condition.

Under the terms of the settlement, the company is to:

• Take immediate corrective action within 90 days to repair or replace the defective section of the main serving the customers in question so as to alleviate existing water leakage and avoid similar outages in the future;
• Compensate those customers affected by the outages at the rate of $50 per outage, for a total compensation of $1,200.
• Provide written proof to the Commission within 30 days that the compensation was made;
• Pay a civil penalty in the amount of $20,000 to resolve the alleged violations.
• Investigate and consider acquiring and operating the natural gas delivery facilities and equipment that make up the Fink gas system in and around Cowansville, Armstrong County, or otherwise providing natural gas distribution service to the premises served by the Fink gas system.
• Notify the Commission’s Gas Safety division in writing of the status of its investigation every three months.

In reviewing the company’s actions related to the incidents, the Prosecutory Staff alleged that Peoples violated portions of the state Public Utility Code and Commission regulations.  The company does not admit to any wrong doing under the settlement. The source of the water leak was eventually determined and the Company completed the repair of the main gas pipeline on Jan. 28, 2010. 

Peoples provides natural gas service to about 360,000 homes in Mercer, Franklin, Lawrence, Beaver, Washington, Greene, Butler, Allegheny, Fayette, Westmoreland, Armstrong, Clarion, Indiana, Somerset, Cambria and Blair 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, audio of select Commission proceedings or more information about the PUC, visit our website at www.puc.state.pa.us.

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Docket No. M-2011-2157542

Contact:

• Denise McCracken
  Senior Communications Specialist
  717-787-5722
  demccracken@pa.gov