Press Release

PUC Seeks Comment on Proposed Settlement with Peoples Gas

Published on 8/28/2025

Filed under: Gas

Settlement Follows a 2022 Excavation Incident That Damaged a Gas Transmission Pipeline and Disrupted Customer Service in Cambria County

HARRISBURG – The Pennsylvania Public Utility Commission (PUC) today voted to seek public comment on a proposed settlement with Peoples Natural Gas Company LLC (Peoples Gas) related to a 2022 excavation accident in Cambria County, which damaged a valve on a transmission pipeline and caused the release of natural gas, ignited a fire, and disrupted service to more than 350 Peoples Gas customers.

The Commission voted 5-0 to publish the proposed settlement – submitted jointly by Peoples Gas and the PUC’s independent Bureau of Investigation and Enforcement (I&E) – in the Pennsylvania Bulletin, beginning a 25-day public comment period.

In December 2022, I&E received a referral from the PUC’s Pipeline Safety Division (Pipeline Safety) regarding an incident that occurred on July 28, 2022, in Johnstown.  On that day, an excavator hired and supervised by Peoples Gas struck and damaged a valve on a natural gas transmission pipeline.  The line strike caused a natural gas release that ignited a fire, destroyed the mechanical excavator, and disrupted natural gas service to 353 customers for more than a full day.

Following Pipeline Safety’s investigation, I&E concluded that sufficient evidence existed to support allegations that Peoples Gas had violated certain provisions of both Commission and federal regulations, including inaccurate mapping around the location of the damaged valve; inadequate procedures and direction for performing excavation work within the transmission line’s tolerance zone (an area within 18 inches of the facility); and the company’s failure to notify the Commission at least 30 days prior to commencing construction work.

Under the terms of the proposed settlement, People Gas will:

• Pay a $25,000 civil penalty, which will not be recovered through future rate cases and will not be tax deductible.
  
  
• Implement a Quality Assurance/Quality Control component for its Damage Prevention Program.
  
  
• Modify its excavation procedures in relation to pipelines and the use of prudent excavation techniques while performing excavations in the tolerance zone of a pipeline.
  
  
• Enhance outreach and education programs for excavators and homeowners.
  
  
• Institute a process to track high-risk excavators and increase employee inspections of certain projects that involve higher risk excavations.
  
  
• Employ cameras and other technologies to verify the presence and location of accessories on pipelines and employ soft-digging techniques, as appropriate.
  
  
• Continue improving map and record keeping systems for field personnel.

A copy of today’s Order will also be served on both the Office of Consumer Advocate and the Office of Small Business Advocate.

About the PUC

The Pennsylvania Public Utility Commission balances the needs of consumers and utilities; ensures safe and reliable utility service at reasonable rates; protects the public interest; educates consumers to make independent and informed utility choices; furthers economic development; and fosters new technologies and competitive markets in an environmentally sound manner.

Visit the PUC’s website at puc.pa.gov for recent news releases and video of select proceedings. You can also follow us on X, Facebook, LinkedIn, Instagram, and YouTube. Search for the “Pennsylvania Public Utility Commission” or “PA PUC” on your favorite social media channel for updates on utility issues and other helpful consumer information.

# # #

Docket No.: M-2025-3052089

Contact:

• David Hixson
  Deputy Press Secretary
  717-772-2766
  dhixson@pa.gov