Company Also Enhances Gas Safety Protocols   

ALBANY — The New York State Public Service Commission (Commission) today adopted the terms and conditions of a joint settlement agreement to resolve all alleged violations committed by Central Hudson Gas & Electric Corporation (Central Hudson) for a gas explosion in 2023.  Under the terms of the settlement agreement adopted by the Commission, Central Hudson admitted it did not provide safe and adequate service and further agreed to pay a $5 million penalty payment for ratepayer benefit. Central Hudson also will establish a gas safety protocol remediation fund between $2.5 million and $3.5 million for targeted safety measure enhancements to prevent similar incidents in the future. The responsibility and obligation to make the financial payment rests with the company shareholders, not ratepayers.

“The Commission’s paramount concern is protecting the public and ensuring safety throughout our energy distribution systems,” said Commission Chair Rory M. Christian. “Enforcement actions hold utilities and their shareholders accountable for violations of the Public Service Law.”

The Department of Public Service’s investigation found that on November 2, 2023, Central Hudson’s contractors struck an unmarked natural gas service line and caused a high-pressure gas leak. Minutes later, the residence at 7 Brick Row exploded and a gas-related fire erupted in the building, severely injuring multiple individuals including children, and damaged other residences along Brick Row. The Department is the staff arm of the Commission.

The Department’s October 2024 investigation report alleged that Central Hudson had actual knowledge of 7 Brick Row’s active natural gas service line prior to the explosion.  Furthermore, the Department contended that Central Hudson apparently did not include this critical information in the project binder given to its contractors for the Brick Row excavation project. The active natural gas line serving 7 Brick Row was not visually designated as an existing underground facility prior to the start of excavation operations on Brick Row.

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.