NYSEG Settles With New York For $2.75M Over Brewster Gas Leak, Fire

BREWSTER, NY — The New York State Public Service Commission voted Thursday to adopt a $2.75 million settlement agreement with New York State Electric and Gas Corporation over violations related to a gas leak and subsequent fire that destroyed a two-family home on Carmel Avenue a year ago.

"The Commission seeks to ensure that public utilities maintain constant vigilance over their gas distribution systems, with public safety as a paramount concern," Commission Chair Rory M. Christian said in a news release. "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."

Under the settlement agreement, NYSEG shareholders will credit gas customers $2.75 million in an interest-bearing regulatory deferred liability account funded at NYSEG shareholder expense; the funds shall be used for ratepayer benefit; and the use of the funds will be at the discretion of the PSC, according to the order issued Thursday afternoon.

NYSEG officials issued a statement afterward:

NYSEG entered into a settlement with the Department of Public Service Staff and that settlement was accepted today by the Public Service Commission. NYSEG cooperated fully in the investigation and decided that entering into a settlement was the best course of action for all concerned. NYSEG is focused on continuing to provide safe and reliable gas service to our customers.

A Department of Public Service staff investigation last year found that the NYSEG employees failed to have proper equipment to effectively respond to the leak and wasted valuable time searching for working equipment. Additionally, department staff concluded that NYSEG's own policies and procedures were inadequate to ensure field staff have the necessary equipment while investigating leaks.

An enforcement action commenced, and alleged violations were enumerated in a commission order. The order described an excruciating series of missteps and delays by NYSEG employees. This is only the summary:

Approximately one hour before the blaze started, New York State Electric and Gas (NYSEG) employees were called to the neighboring building, the “Brewster Superette” deli, to investigate the smell of natural gas. An underground plastic fitting had failed in the company’s gas distribution systems, causing a natural gas leak in the area. The responding NYSEG employees represented the last, best chance of discovering and remediating the underground gas leak. However, instead of investigating, locating, and remedying the leak in an expeditious manner, NYSEG employees expended approximately 60 minutes attempting to find the right diagnostic equipment to perform basic field work.

While NYSEG employees sought to use mismatched equipment and dead batteries, 2592 Carmel Avenue started billowing smoke out of the windows. By that time, approximately one hour had elapsed with no significant remedial or investigatory steps having been taken by NYSEG employees. The building was evacuated, and fire then engulfed the structure.
NYSEG employees called 911, and the Brewster Fire Department (Fire Department) responded to the location. Upon arrival, the Fire Department encountered a raging, gas-fed fire and requested that NYSEG employees shut off the gas main. Inexplicably, it took over three hours and multiple phone calls by the Fire Department to finally shut off the natural gas line feeding the flames.

Department of Public Service investigators alleged:

The Fire Department then instructed NYSEG employees to secure and shut down the gas main, located on the roadway, approximately 40 feet from 2592 Carmel Avenue. NYSEG employees assured the Fire Department that the gas main line was shut off. However, after nearly 1 hour of fighting the blaze, the Fire Department was unable to extinguish the fire. NYSEG employees on scene could not confirm that the gas main was shut down, nor could they explain their protocols to the Fire Department. The gas leak reignited the structure multiple times, prolonging the blaze and significantly hampering Fire Department efforts. Approximately 3 hours elapsed, with multiple phone calls between the Fire Department and NYSEG supervisors, before NYSEG employees were finally able to secure and shut down the gas main. The gas main was shut down at approximately 12:50 p.m.

Even after the fire was extinguished, puddles from the firefighting operations contained visible bubbling as the natural gas percolated up through the ground, investigators said in the order.

After the fire department left, NYSEG staff determined that an improperly installed underground "tapping tee" 40 feet from the house was the source of the leak. Tapping tees are mechanical devices used to connect gas distribution pipes, the PSC investigators said. Their investigation revealed that NYSEG had been alerted to the risks associated with incorrect installation of PermaLock Mechanical Tapping Tee Assemblies a decade before the fire.

On Aug. 11, the Commission ordered NYSEG to submit a remediation plan to investigate the installation of similar tapping tees and confirm their safe and intended operation, or repair or replace improperly installed devices in its service territory.

On Nov. 17, the Commission approved NYSEG's plan. Following that, the company began sampling and investigation efforts, and it is continuing that work, PSC officials said Thursday.

SEE:

• Fire Consumes Brewster Home
• NY Could Fine Utility Over Gas-Leak-Fed Fire In Brewster

Editor's Note: The $2.75 million is part of a settlement between NYSEG and the PSC. It was incorrectly categorized in the headline on the original version of this report. Patch regrets the error.