Gas Explosion Penalties

Finding that Puget Sound Energy (PSE) had violated a number of pipeline safety regulations, the Washington Utilities & Transportation Commission assessed a $2.75 million civil penalty on the company, which the commission said was the highest it has ever ordered for such infractions.

The commission stated that PSE's failure to properly inspect and deactivate a particular segment of pipeline was the proximate cause of a March 2016 explosion in Seattle that injured several firefighters and produced widespread property damage. In total, the commission identified five specific safety violations, none of which were contested by PSE.

According to the commission, the blast was precipitated by damage to an above-ground service line by trespassers who regularly accessed the space where the line was located. The commission's investigation revealed that PSE had improperly retired the line in 2004, allowing it to remain active until it was shut off after the explosion. In that regard, the commission found that the company had been negligent in fulfilling its duty to perform periodic gas leak surveys and corrosion tests as required by pipeline safety regulations.

Under an associated settlement agreement, PSE will pay $1.5 million up-front. It will be liable for the additional $1.25 million in penalties if it fails to complete a comprehensive gas pipeline inspection and remediation program by agreed deadlines.

The commission deemed the penalty provisions to strike an appropriate balance between the severity of the violations and the resulting harm, as well as the company's acceptance of responsibility, cooperation, and agreement to take all necessary steps to minimize the possibility of future violations. (Docket PG-160924, Order 04)