The New York Public Service Commission on Thursday voted to accept a $2.75 million settlement agreement with Avangrid’s (NYSE:AGR) New York State Electric and Gas over a gas leak that led to a fire last February (22-G-0425).

The funds will be used for gas ratepayer benefits, at the discretion of the commission.

The Feb. 2, 2022, incident destroyed a two-family home in Brewster, a village in the Lower Hudson Valley. Subsequent investigations concluded that NYSEG improperly installed the PermaLock tapping tee that caused the leak, kept poor records and complicated fire-prevention efforts because employees lacked proper equipment. (See NY PSC Accepts NYSEG Proposal to Address Gas Leak Fire.)

The order adopting the agreement notes that the commission-approved remediation plan — which directed NYSEG to investigate and resolve further tapping tee violations — is ongoing.

However, the order states that the $2.75 million settlement “provides gas ratepayers with a substantial financial benefit in connection with the resolution of the 11 alleged violations identified.”

“The commission holds public utilities responsible for the maintenance and safety of their gas facilities, and expects utilities to be ever ready for, and respond promptly and effectively to, incidents such as the Brewster event,” Public Service Commission Chair Rory Christian said in a statement.

The commission also called for a new proceeding “wherein all gas distribution utilities in New York will confirm and report on the use of PermaLock tapping tees in their service territories and perform an examination of potentially improperly installed PermaLock tapping tees in their gas systems.”