Press Release

HARRISBURG, Pa. – The Pennsylvania Public Utility Commission (PUC) today approved a tentative settlement with Peoples Natural Gas Company regarding a gas explosion that occurred in Altoona, Blair County, in 1998, destroying 12 buildings and damaging an additional 51.

Under the terms of the settlement, Peoples will:

• Pay a civil settlement of $25,000 for violating state and federal gas safety regulations,
• Conduct additional training at the cost of $35,000 for its employees involved in turn-off and turn-on procedures and connecting service line/set procedures. The trainings will also include a review of the pipeline safety regulations, and
• Pay for all settlement costs, which cannot be recovered in the costs of any future ratemaking proceeding.

On Dec. 8, 1998, a Peoples employee removed a locking device on a valve supplying gas service to 320 Logan Boulevard in Altoona. The employee also conducted routine gas tests at the site. The following day, Peoples investigated a gas odor complaint at 308 Logan Blvd., but found no indications of a leak and left the property without contacting the occupants. Early in the morning of Dec. 10, an explosion there completely destroyed seven homes and five businesses and damaged 51 buildings. No one was injured.

A PUC investigation concluded that the Peoples employees violated the gas pipeline safety regulations by not determining whether the piping to 320 Logan Blvd. presented a hazard, and by not fully investigating the odor complaint. The employees also failed to follow existing company procedures by leaving the cap off an open pipe and by failing to contact a homeowner before leaving the scene.

A 20-day comment period follows the approval of the tentative order. Any person that has an interest in the proceedings can file exceptions with the PUC during this time. If no opposing comments are filed during the comment period, the tentative order will become a final order.

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