NY PSC Accepts NYSEG Proposal to Address Gas Leak Fire
Fire at 2592 Carmel Avenue on Feb. 2
Fire at 2592 Carmel Avenue on Feb. 2 | Mahopac Volunteer Fire Department
NYSEG faces a $250,000 fine for each violation and their Sampling Plan addresses the public safety and remedial issues raised in the PSC investigation.

The New York Public Service Commission this month approved New York State Electric and Gas’ (NYSE:AGR) proposed plan to address the installation errors that caused a natural gas explosion that destroyed a two-family home in the village of Brewster last February (22-G-0425).

The PSC on Nov. 17 directed NYSEG to repair and remediate all errors identified in the 450 randomly selected inspection sampling sites no later than May 17, 2024, and submit quarterly progress reports.

The commission indicated that it may fine NYSEG a “civil penalty not exceeding the greater of $250,000 or ‘[0.03%] of the annual intrastate gross operating revenue of the corporation’” for each established violation.

The incident at 2592 Carmel Ave. was caused by “an underground gas leak, which contributed to a residential fire and ultimately led to the complete destruction of the duplex residence,” according to the PSC.

The commission’s investigation determined that efforts to prevent the fire were complicated because NYSEG employees lacked proper equipment to effectively respond to the leak, installed the nearby tapping tee improperly and failed to maintain reliable record keeping.

Specifically, NYSEG informed the PSC it could not “ascertain from its own historical records the specific personnel involved in installing the PermaLock Tapping Tee” related to February explosion, leading the PSC to write that additional “opportunistic inspections” are likely.

NYSEG intends to perform inspections “before the 2023 winter season, and subsequently completing the project by spring 2024,” but if additional “anomalies and defects are detected,” the company “may be required to increase its sampling size.”

If additional evidence is found that NYSEG has not maintained reliable “record keeping pertaining to piping and component installation,” the PSC “has the regulatory authority to order changes to internal utility protocols and procedures.”

The commission stressed that it expects that “utilities maintain their distribution systems and components to ensure public safety and that they avoid or replace components whose failure can harm to public.”

In a statement to NetZero Insider, the PSC said that they are currently focused “on testing before any next steps are decided” in response to questions about whether it planned on tightening the rules or regulations surrounding tapping tees.

Earlier this year, one person died and many more were injured due to gas leak explosion in a Bronx three-story home.

Meanwhile, National Grid recently agreed to pay approximately $650,000 to settle a 2018 natural gas explosion in Herkimer County that destroyed an entire home and settled a 2018 gas explosion in Long Island for nearly $2 million (18-G-0716 and 15-G-0298).

According to a report released by the U.S. Public Interest Research Group’s Educational Fund, a gas pipeline incident occurred roughly every 40 hours in the U.S. between 2010 and 2021, with 2,600 of those incidents being serious enough to report to the federal government and resulting in the death of 122 people.

Company NewsFossil FuelsNatural GasNew YorkPublic Service CommissionState and Local Policy

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