Press Release

PUC Approves $150,000 Settlement with National Fuel Gas Distribution Corp.

Published on 5/1/2008

Filed under: Gas

Harrisburg – The Pennsylvania Public Utility Commission (PUC) today modified a settlement with National Fuel Gas Distribution Corp. (NFG) that addresses an informal investigation into a gas explosion that resulted in two fatalities in Sandy Township, Clearfield County.

The Commissioners voted unanimously to approve the Motion of PUC Chairman Wendell F. Holland to modify the Joint Settlement between PUC’s prosecutory staff and NFG.   The Joint Settlement reflected a $50,000 civil penalty and directed the company to fund $30,000 in safety related activities to its system.  As part of the Motion, and in lieu of a $50,000 civil penalty, NFG will be required to direct $100,000 to the company’s Neighbor for Neighbor Heat Fund and spend $50,000 to fund safety related activities for its system. 

“The Neighbor for Neighbor Heat Fund is a voluntary program designed to provide assistance to qualifying individuals who require aid to meet basic energy needs,” said Chairman Holland.  “Directing $100,000 to this program will help prevent customers from being disconnected, give them assistance to help pay their overdue bills or allow them to purchase heating fuel or repair heating equipment.”

The Tentative Order follows an informal investigation of an Aug. 21, 2004, gas explosion at 48 Woodland Lane in Sandy Township.  The explosion destroyed the home, resulting in the deaths of two residents.  The explosion resulted from a leak in the gas line.  NFG has committed to undertake system improvements that exceed $1.8 million and has agreed to address recommendations and ensure the overall safety and reliability of its distribution system by modifying its operating procedures and accelerating the plastic pipe leakage survey of its Pennsylvania system.  The company has also re-trained and tested its plastic fusion work crewmembers.  The Tentative Order will become final in fifteen days unless an appeal is filed.

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.

###

Docket No. M—2008-2013013

Contact:

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