Pennsylvania Public Utility Commission : PUC Approves Gas Safety Settlement with Peoples Natural Gas; Includes New Safety Enhancements & Civil Penalty

HARRISBURG - The Pennsylvania Public Utility Commission (PUC) today approved a settlement with Peoples Natural Gas Co., LLC (Peoples) that includes new gas safety enhancements and a $50,000 civil penalty. The settlement stems from the company's alleged failure to correctly classify and document gas leaks and make necessary and appropriate repairs in a timely manner.

The Commission voted 5-0 to approve the settlement between Peoples and the Commission's independent Bureau of Investigation and Enforcement (I&E). On April 8, 2016, I&E filed a complaint against Peoples based on alleged violations of the Public Utility Code, PUC regulations and federal gas pipeline safety regulations, including alleged violations of Peoples' own standard operating procedures (SOPs), emergency plans and emergency plan guidelines.

In addition to the civil penalty, which cannot be recovered from ratepayers and is paid to the state's general fund, the settlement includes corrective actions to Peoples' internal practices and procedures, including but not limited to:

• Monitor and inspect vented Class 1 leaks daily during frost or frozen ground conditions;
• Modify its SOPs to include action criteria for leaks that are consistent with the Gas Piping Technology Committee guide;
• Implement new expanded guidelines that require venting of a Class 1 leak as a last resort;
• Implement written guidelines that identify when and how short, leaking sections of main are to be considered for replacement versus repair, and that promote removal or replacement over repair;
• Complete training associated with these changes; and,
• Work to modify Peoples' annual capital budget categories to allow for more unplanned pipe replacement projects, thereby promoting pipe replacement versus repair.

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.

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Docket No.: C-2016-2437295