NFG Shareholders Agree to Pay $700,000 for Ratepayer Benefit

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 National Fuel Gas Distribution Company (NFG), related to a gas explosion in 2024. 

“The Commission takes very seriously its role of ensuring the public’s safety,” said Commission Chair Rory M. Christian. “The decision reached regarding this gas explosion clearly demonstrates that we will hold utilities and their shareholders fully accountable through enforcement actions to protect the public.”

The Commission adopted the terms and conditions of a settlement agreement that would resolve all alleged violations committed by NFG relating to a natural gas incident at 820 20th Street, Niagara Falls, Niagara County.

On May 1, 2024, NFG dispatched a company employee to the 20th Street property to unlock an outside natural gas meter and turn the service on for a new resident.  The residence was a multi-family rental property, which was occupied by a new resident on the second floor at the time of the incident. Upon arrival, the NFG employee encountered raw sewage at the foot of the residence's basement stairs.  A subsequent investigation determined that the company employee did not enter the basement area to check the condition of the furnace and hot water heater.  Instead, the NFG employee exited the residence, without performing the necessary appliance safety checks, and turned the gas meter service valve "on."  Shortly thereafter, the residence exploded, and a natural gas-related fire erupted inside of the building. A first-floor resident was inside the building at the time of the explosion. That resident was able to escape the structure and apparently experienced physical injuries due to the blast.  The entire multi-family building was destroyed from the ensuing blaze that was triggered by the explosion.

A Department investigation alleged that the responding NFG employee should not have turned the gas meter on given the attendant facts and circumstances. Furthermore, the Department’s investigation determined that the NFG employee misrepresented the residence's appliance conditions in company records. Under the terms of the settlement agreement, NFG shareholders will pay $700,000 for enhanced safety measures and training to prevent similar incidents in the future.

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 25-G-0202 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.