SEC Investigating Columbia Gas Parent For Pre-Disaster Filings

ANDOVER, MA -- The U.S. Securities and Exchange Commission is investigating NiSource Inc., the parent company of Columbia Gas of Massachusetts, for disclosures made before the Sept. 13 gas explosions in Andover, North Andover and Lawrence. NiSource disclosed in its annual report released Wednesday that it had been notified about the investigation on Feb. 11.

"On February 11, 2019, the SEC notified the company that it is conducting an investigation of the company related to disclosures made prior to the Greater Lawrence incident," NiSource said in its annual report. "We intend to cooperate with the investigation."

A spokesperson for the SEC said Friday that the agency does not comment on investigations. It's unclear what the investigation is looking at. NiSource is also under investigation by the National Transportation Safety Board and the U.S. Attorney's Office for Massachusetts. A preliminary NTSB report put blame for the explosions on Columbia Gas.

"The company intends to cooperate with this investigation," NiSource spokesman Ken Stammen said. "We can't speak to the specifics of the investigation, which has just commenced."

Also on Wednesday, NiSource said the bill for the recovery effort following the explosions has now topped $1 billion. In addition to leaving thousands of people without heat or hot water for months following the disaster, the explosions killed one, injure more than two dozen and damaged or destroyed more than 130 buildings in the three communities.

NiSource said it was actively trying to settle the numerous lawsuits filed against it in the wake of the disaster. The company has signaled it will ask Massachusetts regulators to approve a rate increase to cover the recovery costs, but it declined this week to say when it would make that request.

Never miss another local news story: Get free local news alerts right to your inbox.

Top: The house on Chickering Road in Lawrence where 18-year-old Leonel Rondon was killed on Sept. 13. Rondon was sitting in the car parked in the driveway when a gas explosion destroyed the house and toppled the chimney onto the car. Photo by Dave Copeland/Patch.

Dave Copeland can be reached at dave.copeland@patch.com or by calling 617-433-7851. Follow him on Twitter (@CopeWrites) and Facebook (/copewrites).