PSC Initiates Enforcement Case Concerning Central Hudson Gas Expl...

ALBANY - The New York State Public Service Commission (Commission) today ordered Central Hudson Gas & Electric Corporation (Central Hudson) to show why a civil enforcement proceeding should not commence and why civil penalties or other remedies should not be imposed by the Commission for apparent violations relating to a gas-related explosion that occurred at 7 Brick Row, Wappingers Falls, Dutchess County, on November 2, 2023. The explosion injured multiple adults and children. The utility has 30 days to provide a response. Today, the Department of Public Service (Department) staff also released a report describing the results of its preliminary investigation.

"Utilities are required to provide safe and reliable service, and when they fail to provide this most basic protection, the Department and Commission will investigate and, where appropriate, take action," said Commission Chair Rory M. Christian. "Based upon staff's initial investigation, staff has identified information indicating that Central Hudson had knowledge of the residence's active natural gas service line, and that Central Hudson's contractors struck an unmarked natural gas service line, causing a natural gas leak that in turn led to an explosion. The Commission will start a process to receive the company's position, review the evidence, and determine whether or not any penalties or other remedies against Central Hudson are warranted."

According to the report, on November 2, 2023, Central Hudson was conducting natural gas distribution upgrades in the Wappingers Falls area as part of a distribution improvement project. These gas system upgrades included excavating gas facilities located under roadways and walkways to replace steel gas pipelines with new plastic pipelines, as well as installing new service lines to ratepayer residences. During operations, Central Hudson contractors struck an unmarked natural gas service line, causing a natural gas leak. Minutes later, the residence at 7 Brick Row exploded, severely injuring multiple individuals.

The Department's investigation determined that there appears to be sufficiently credible evidence indicating that Central Hudson had prior knowledge of the residence's active natural gas service line. The residence contained an active natural gas meter that had been billed monthly. However, it appears that Central Hudson did not include this information in the project binder given to its utility locating contractors and construction contractors for the excavation project, and that the service line to the residence was not marked. Thus, based on the information obtained thus far, Central Hudson's apparent failure to relay this information to its agents may have contributed to the explosion incident. The Department is the staff arm of the Commission.

Today's order commences a proceeding. This initial order does not constitute final legal conclusions or factual findings by the Commission. The apparent violations are merely accusations. The company will have an opportunity to respond to the Department staff's report and the apparent violations identified today. Also, the Department may continue to review and investigate this incident.

In terms of next steps, the Commission will review Central Hudson's response to determine whether to proceed with an enforcement process and whether to impose any financial penalties or other remedies against the company or its shareholders.

Today's decision may be obtained by going to the Commission Documents section of the Commission's Web site at www.dps.ny.gov and entering Case Number 24-G-0483 in the input box labeled "Search for Case/Matter Number". Many libraries offer free Internet access. Commission documents may also be obtained from the Commission's Files Office, 14th floor, Three Empire State Plaza, Albany, NY 12223 (518-474-2500). If you have difficulty understanding English, please call us at 1-800-342-3377 for free language assistance services regarding this press release.

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