Published on 2/9/2023

Proposed Settlement Calls for $125,000 Civil Penalty and Procedural Changes by NFG to Help Prevent Future Incidents

HARRISBURG – The Pennsylvania Public Utility Commission (PUC) is seeking public comment on a proposed settlement between National Fuel Gas Distribution Corporation (NFG) and the PUC’s independent Bureau of Investigation and Enforcement (I&E) – addressing a 2020 incident in Erie, Pennsylvania, that resulted in a natural gas main “hit,” gas leak, and fire in a nearby building.

The Commission voted 5-0 today to seek comment from interested parties on the Joint Petition for Approval of Settlement which was submitted by NFG and I&E.

The proposed settlement calls for NFG to pay a $125,000 civil penalty and make a series of modifications to business practices and policies that would mitigate the likelihood of similar occurrences.

Erie Gas Leak/Fire Investigation

The settlement springs from an informal investigation by I&E’s Safety Division into an incident on Nov. 2, 2020, in the 1200 block of Brown Avenue in Erie, Pennsylvania.  According to investigators, an NFG gas main was damaged as construction crews were replacing a damaged utility pole at that location. Before the flow of gas could be stopped, gas moved into the basement of an apartment building and ignited, resulting in the evacuation of the building.

The Safety Division investigation identified several alleged deficiencies, including:

• The gas main was mismarked by the utility’s line locator.
• NFG’s maps were inaccurate.
• NFG established procedures were not followed.
• NFG failed to stop the flow of gas in a timely manner, which was a factor in the fire.
  

Proposed Settlement

According to the joint settlement proposed by I&E and NFG, the utility will pay a $125,000 civil penalty to the Commonwealth of Pennsylvania, which shall not be tax deductible and will not be recovered in any future ratemaking proceeding.

Additionally, the joint settlement notes that NFG has already taken or will soon initiate a series of steps to address issues identified by the Safety Division:

• Tracking high risk excavations and excavators.
• Identify locations with suspected mapping issues and update maps.
• Develop annual line location training for employees and contractors.
• Use specialized tools for line location.
• Establish a “quality group” to verify the use of proper procedures.
  

Commenting on the Proposed Settlement

Interested parties may submit comments, preferably via the Commission’s electronic filing system (eFile), within 25 days of publication of today’s Opinion and Order in the Pennsylvania Bulletin. 

An eFile account may be opened free of charge and used through the Commission’s website: https://www.puc.pa.gov/efiling/default.aspx.   

Paper comments may be filed with the PUC’s Secretary’s Bureau at the following address:

Rosemary Chiavetta, Secretary
Pennsylvania Public Utility Commission
Commonwealth Keystone Building
400 North Street
Harrisburg, PA  17120