HARRISBURG, PA — State regulators are seeking the maximum allowable penalty against UGI Utilities following a deadly natural gas explosion at a Berks County chocolate factory, alleging multiple safety violations tied to the incident that killed seven workers.
What This Means for You
- Regulators are pursuing over $2.5 million in penalties against UGI
- The case could lead to stricter oversight of aging gas pipelines
- Safety upgrades may impact how utilities monitor leaks statewide
The Pennsylvania Public Utility Commission’s Bureau of Investigation and Enforcement filed a formal complaint against UGI Utilities, Inc. – Gas Division, seeking $2,576,627 in civil penalties and a series of mandated safety improvements.
Explosion And Investigation Findings
The explosion occurred around 4:55 p.m. on March 24, 2023, at the R.M. Palmer Company facility in West Reading.
According to the complaint, natural gas leaked from an older plastic pipeline component beneath Cherry Street, migrated underground, and entered the factory before igniting.
The blast destroyed one building, heavily damaged another, and leveled a nearby apartment building, displacing residents.
Seven workers were killed, four people were seriously injured, and six others suffered injuries. The incident caused an estimated $42 million in property damage and drew a response from 56 emergency agencies.
Federal investigators with the National Transportation Safety Board found the probable cause was the failure of a retired plastic pipeline component known as an Aldyl-A service tee, combined with contributing factors including elevated ground temperatures from a nearby steam pipe and gaps in risk management.
Alleged Safety Violations
State investigators allege 27 violations of state and federal pipeline safety rules.
Among the key allegations, regulators claim UGI:
- Failed to maintain accurate records and mapping of pipeline infrastructure
- Did not properly assess risks tied to aging plastic pipeline materials
- Overlooked environmental factors, including heat from nearby steam lines
- Lacked sufficient monitoring and inspection procedures
- Did not maintain adequate emergency response coordination
The complaint also alleges UGI failed to take all reasonable steps required to protect public safety under the Public Utility Code.
Proposed Safety Reforms
Regulators are also seeking corrective actions aimed at preventing similar incidents.
These include expanding methane leak detection systems that can automatically alert operators, increasing inspection frequency for older pipelines, and improving tracking of aging infrastructure installed before 1983.
The complaint further calls for new procedures to retire outdated plastic components and stronger coordination during emergency responses.
Next Steps In The Case
The case will move through the commission’s formal legal process, where an administrative law judge will review the allegations.
UGI will have an opportunity to respond before regulators determine whether violations occurred and what penalties or corrective measures will be enforced.
The Bureau of Investigation and Enforcement, which filed the complaint, serves as the commission’s independent enforcement arm and is responsible for investigating utility safety incidents and pursuing actions to protect public safety.
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