Press Release

PUC Rejects Settlement with UGI Utilities Inc. for Violations

Published on 5/24/2012

Filed under: Gas

HARRISBURG – The Pennsylvania Public Utility Commission (PUC) today rejected a settlement agreement with UGI Utilities Inc. (UGI) as a result of alleged violations to the Public Utility Code and federal gas safety laws.

The Commission voted 5-0 to approve a motion by Commissioner Wayne E. Gardner rejecting the proposed settlement agreement between the PUC’s independent Prosecutory Staff and UGI. The matter has been returned to the PUC’s Bureau of Investigation and Enforcement.

“It is important to underscore the fact that this is the eighth settlement agreement entered into between UGI and the Commission’s Prosecutory staff over a time period of less than five years,” said Commissioner Gardner in his motion.

The proposed settlement followed an investigation into an Aug. 6, 2009, incident which involved a UGI backhoe bucket striking a tapping tee and damaging it, resulting in the failure of the distribution main and the release of natural gas.

The PUC’s independent Prosecutory Staff alleged that, among other violations, UGI failed to take precautionary measures for locating the main valve or isolating the area before digging commenced, nor did UGI have written procedures to minimize the hazard resulting from a gas pipeline emergency.  Furthermore, it is alleged that the UGI work crew did not protect the public or property by closing off the nearest valve. 

Under the proposed settlement, UGI would have paid a $25,000 civil penalty and changed its practices and procedures to ensure that work crews were retrained regarding emergency protocol and receive additional education on excavation.

UGI provides natural gas service to about 320,000 customers in 15 southeastern 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-2012-2141712

Contact:

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