On June 18, the Public Utility Commission approved a settlement with UGI Utilities Inc. – Gas Division (UGI) in connection with a 2020 gas main eruption beneath a roadway in Swiftwater, Monroe County, that resulted in one death and injuries to two other people.
The Commission voted 5-0 to approve the joint settlement between UGI and the PUC’s independent Bureau of Investigation and Enforcement (I&E), which had filed a formal complaint against UGI on Dec. 19, 2023, alleging violations of both state and federal regulations related to the incident on Lower Swiftwater Road in Swiftwater.
In its formal complaint, I&E stated that on Dec. 25, 2020, the failure of a UGI owned and maintained pipeline led to an underground natural gas release that left a large hole in the roadway, resulting in the death of a passenger in a passing vehicle; injuries to two other people; the evacuation of two nearby residences; and the loss of gas service to downstream customers.
In total, the incident caused approximately $80,000 in damage.
Highlights of the joint settlement include:
-- UGI will pay a $750,000 civil penalty. The civil penalty is not tax deductible, and UGI will not seek recovery of any portion of the civil penalty in a future ratemaking proceeding.
-- UGI will enhance its qualified plastic butt-fusion procedure requirements and expand butt-fusion oversight activities, including new field sampling and testing requirements.
-- UGI will continue to expand and enhance the responsibilities of its Quality Assurance Group in order to improve its Quality Assurance/Quality Control (QA/QC) Program. In order to improve QA/QC for plastic pipe installations, with a focus on best practice fusion approaches, UGI will hire an experienced consultant that will assist the company in developing targeted spans of control and/or appropriate inspection frequency intervals.
-- UGI will initiate a pilot to evaluate the feasibility of using available technology to collect attribute information during butt-fusion activities.
-- The company will enhance training for field inspectors.
-- UGI will continue to be proactive in reducing risk and ensuring the continued safe operation of the Monroe County Transit Authority (MCTA) Project facilities. This includes UGI replacing the remaining 12-inch high density plastic main pipeline that was installed as part of the original MCTA Project which is still in operation.
UGI is to verify with the Commission the fulfillment of each non-monetary, remedial measure.