The New York State Public Service Commission has approved a settlement with Central Hudson Gas & Electric Corporation over a 2023 gas explosion. Central Hudson admitted to failing to provide safe and adequate service and will pay a $5 million penalty for the benefit of ratepayers. The company will also create a gas safety protocol remediation fund valued between $2.5 million and $3.5 million, which is intended for specific safety improvements aimed at preventing similar incidents in the future. Shareholders, not ratepayers, are responsible for these payments.
“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.”
An investigation by the Department of Public Service determined that on November 2, 2023, contractors working for Central Hudson struck an unmarked natural gas service line, resulting in a high-pressure leak. Shortly after, an explosion occurred at 7 Brick Row followed by a fire that seriously injured several people, including children, and damaged nearby homes.
According to an October 2024 report from the Department of Public Service, Central Hudson had actual knowledge of an active natural gas service line at 7 Brick Row before the incident but did not include this information in project materials provided to its contractors. The active line was also not visually marked as required before excavation began.
The full decision can be accessed through the Commission Documents section on www.dps.ny.gov by searching Case Number 24-G-0483.
