Press Release

PUC Increases Civil Penalties to be Paid by PGW from $22,250 to $100,000 for 14 Violations Related to 2 Cold-Weather Deaths

Published on 8/25/2005

Filed under: Gas

HARRISBURG -- The Pennsylvania Public Utility Commission (PUC) today voted to amend two Settlement Agreements with the Philadelphia Gas Works (PGW) to increase civil penalties, related to 14 violations and two cold-weather deaths, from $22,250 for the two cases to a total of $100,000. 

“The civil penalties in these proceedings are inadequate and send the wrong signal to PGW and every other public utility under our jurisdiction that provides service essential for the health and safety of its customers,” Chairman Wendell F. Holland said in a motion approved today (motion).  “Given the particular circumstances of these investigations, I find that the civil penalties proposed in the Settlement Agreements are not consistent with the public interest, due to the egregious nature of the alleged violations.  I believe that a civil penalty, under these circumstances, of $50,000 in each proceeding is appropriate and consistent with prior Commission decisions.

“The winter heating season is fast approaching, and energy prices are rising.  Given the serious repercussions that winter terminations could have on the health and safety of residential customers, I remind all utilities that violations of the winter- termination provisions and the failure to appropriately restore service will be subject to the maximum civil penalties allowed under the Public Utility Code.  I do not want this Commission to be in the position of adjudicating these kinds of incidents arising this coming winter.”      

In both cases, fatalities occurred due to hypothermia after a utility termination. 

In one case, the Commission’s investigation revealed that PGW repeatedly failed to contact a residential customer or to complete the termination process.  Rather than leaving the required 24-hour notice, PGW immediately terminated service to the residence.  The customer was found deceased in the residence on Dec. 4, 2002.  The Settlement recognized that PGW will make changes to improve its shut-off procedures and proposed a civil penalty totaling $7,000 for six violations of its tariff and the Public Utility Code.  Today, the Commission increased that civil penalty to $50,000.

In the second case, the Commission’s investigation revealed that a residential customer applied for service and PGW connected the service, but failed to bill the account and subsequently improperly terminated the service with no wrongdoing by the customer.  On Jan. 23, 2003, the customer was found deceased in the residence.  The Settlement Agreement recognized that PGW has committed to implementing changes to its customer contact follow-up procedures and proposed a civil penalty totaling $15,250 for eight violations of its tariff and the Public Utility Code.  Today, the Commission increased that civil penalty to $50,000. 

Public utilities are required under Section 1501 of the Public Utility Code to “…furnish and maintain adequate, safe and reasonable service…as shall be necessary or proper for the accommodation, convenience and safety of its patrons, employees and the public.”

The Pennsylvania Public Utility Commission ensures safe, reliable and reasonably priced electric, natural gas, water, telephone and transportation service for Pennsylvania consumers, by regulating public utilities and by serving as responsible stewards of competition. 

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Docket Numbers M-00041858 and M-00041859

Contact:

• Tom Charles
  Director of Communications
  717-787-9504
  thcharles@pa.gov