Press Release

PUC Finalizes $5,000 Settlement with UGI over Lancaster Natural Gas Explosion

Published on 2/5/2009

Filed under: Gas

HARRISBURG – The Pennsylvania Public Utility Commission (PUC) today finalized a settlement with UGI Utilities Inc. that includes a $5,000 civil penalty after a natural gas explosion in Lancaster.

The Commission voted unanimously to approve the settlement. Neither the civil penalty nor most of the other costs associated with the terms of the settlement may be recovered from ratepayers. Also included under the settlement, UGI will:

• Replace about 300 cell phones with intrinsically safe cell phones over the a three-year phase-in period at a cost of $90,000;
• Provide gas safety education programs to fourth and fifth graders in elementary and middle schools in its service territory at a cost of $25,000;
• Revise its dispatching procedures for emergencies;
• Evaluate its equipment issued to UGI emergency responders; and
• Meet with all 911 centers in the service territory to discuss emergency procedures;

The settlement followed a formal investigation by the PUC's independent Prosecutory Staff into a March 26, 2004, gas explosion on the 400 block of Queen Street, Lancaster, that injured a UGI employee who was investigating the basement of a residence at the time. Although, the gas explosion did not cause a fire, portions of the basement were scorched and the UGI employee suffered burns to his hands and face.

In reviewing the company’s actions in relation to the incident, the Prosecutory Staff alleged that UGI violated portions of the state Public Utility Code and federal regulations on pipeline safety.

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.

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Docket No. C-20066664

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