Columbia Gas May Pass Explosion Costs Onto Customers

LAWRENCE, MA -- Columbia Gas of Massachusetts may pass the cost of the Sept. 13 gas explosions onto its customers, the CEO of its parent company said Monday. NiSource Inc. Joe Hamrock made his comments during a hearing the Senate Committee on Commerce, Science, and Transportation in Lawrence.

"I’m not in a position today to make such a commitment," Hamrock said when Rep. Nikki Tsongas (D-MA) asked him to pledge that the costs would not be passed onto customers. The final cost could be as high as $1 billion, according to some estimates.

Earlier this month, NiSource said it was taking a $461.9 million charge for third-party claims and other expenses stemming from the explosions as part of its third-quarter results. NiSource said at the time it expects to recover most of the $461.9 million in claims to its insurers. But the company warned that the total costs could go up, as no claims had been recorded when the fiscal quarter ended on September 30.

Hamrock, Lawrence Mayor Dan Rivera and Andover Fire Chief Michael Mansfield were among the people who testified at a hearing of the Senate Committee on Commerce, Science, and Transportation in Lawrence Monday morning. Edward Markey (D-MA) sits on the committee, which is looking into the Sept 13 gas explosions in Lawrence, Andover and North Andover that killed one and damaged or destroyed more than 130 buildings in the three communities.

The sister of Leonel Rondon, who was killed when a chimney fell on the car he was sitting in outside of his family's home in Lawrence, called for justice.

"The grief we feel is unbearable, but we know Leonel would want us to stay strong. We will stand with the community on his behalf," Lucianny Rondon said. "We hope there will be justice for him and the community."

Both Hamrock and Columbia Gas of Massachusetts President Steve Bryant apolgized directly to Rondon's family.

"I will carry that in the heart for the rest of my life," Bryant said.

In other tetsimony, Bryant said the company was committed to having all customers in their homes by Christmas, past the Dec. 19 deadline for the completion of restoration work the company previously announced. As of Sunday afternoon, the company still had to restore service to 1,304 customers and 8,048 people remained in temporary housing.

"We're going to hold you to that," Sen. Elizabeth Warren (D-MA) said. Warren, Markey and Rep. Seth Moulton (D-MA) all called for both executives to resign.

The explosions also injured at least 24 people and forced the short-term evacuation of thousands of residents. Columbia Gas is still working to restore service to thousands of gas customers who have been without heat or hot water since the explosions more than two months ago.

Patch will update this story with ongoing coverage throughout the day Monday.

Read the openining remarks and testimony:

The following are links to and selected excerpts from the prepared tetsimony of speakers at Monday's hearing:

• Robert L. Sumwalt, III Chairman National Transportation Safety Board: "Pipelines remain one of the safest and most efficient means of transporting vital commodities used to power homes and supply businesses. However, as many in this room know all too well, the consequences are tragic when there is insufficient safety planning and oversight."
• Matthew A. Beaton, Secretary of Energy & Environment: "The issue of pipeline inspectors has also been an area of public scrutiny in in the wake of the Merrimack Valley overpressurization event; however, based on the information made publicly available to date, we believe that no additional number of inspectors could have prevented this incident."
• NiSource CEO Joe. Hamrock: "We are deeply sorry. To those who were injured, those who cared or are caring for injured loved ones, and those whose homes or businesses were damaged or destroyed because of the fires and explosions, we recognize the distress and hardship this has caused in your lives."
• Richard B. Kuprewicz President, Accufacts Inc.: "The situation affecting the Merrimack Valley in Massachusetts on September 13, 2018, while rare for gas distribution operations, raises many questions about the adequacy or clarity of minimum pipeline safety regulations and safety process approaches."
• Paul Roberti, Chief Counsel for the Pipeline and Hazardous Materials Safety Administration:"Pipeline operators must understand that they have a responsibility to demand excellence from the contractors and subcontractors they hire to work on their systems."
• Lawrence Mayor Daniel Rivera: "I never thought that I would have to ask people in my community and those in surrounding communities to evacuate the city, fearing for their lives."
• Tina Messina, owner of Wine Connextion in North Andover: "This is a critical time for retailers and hospitality businesses, and we wonder how will we fare through this season? Do customers know we’re open? Will they return to our businesses or have they adopted new locations of shopping for goods and services? When will residents be able to return to their homes and patronize our businesses?"

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Top: Columbia Gas of Massachusetts President Steve Bryant (left) and NiSource Inc. CEO Joe Hamrock both testified at a Congressional Hearing in Lawrence Monday morning. File 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).