PSC accepts multi-million-dollar settlement over alleged NYSEG gas safety violations

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ALBANY – The State Public Service Commission, Thursday, adopted a $2.75 million settlement agreement with New York State Electric and Gas to resolve an enforcement action and alleged violations committed by the company pertaining to its response to a February 2, 2022 gas leak and fire at 2592 Carmel Avenue in the Village of Brewster.

On that date, NYSEG’s workers improperly installed a PermaLock tapping tee lead to an underground gas leak, which contributed to a residential fire and ultimately led to the complete destruction of a duplex residence.

Tapping tees are mechanical devices used to connect gas distribution pipes together.

A Department of Public Service staff investigation determined that responding NYSEG employes did not have proper equipment to effectively respond to the leak and wasted valuable time searching for working equipment.

Department staff also concluded NYSEG’s own policies and procurements were inadequate to ensure field staff have the necessary equipment while investigating leaks.

To resolve the violations alleged in the enforcement proceeding, the PSC adopted a settlement agreement where NYSEG shareholders will credit gas customers $2.,75 million in full satisfaction of all alleged violations relating to the company’s response to the February incident.




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