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Pennsylvania PUC Seeks $2.6 Million Penalty, Safety Orders Against UGI Over 2023 Factory Blast

Regulators cite lapses spanning vintage plastic pipe risks to emergency response.

Overview

  • The PUC’s Bureau of Investigation and Enforcement filed a formal complaint alleging 27 state and federal pipeline‑safety violations tied to UGI’s system serving the R.M. Palmer plant.
  • Investigators say natural gas leaked from a retired plastic service tee connected to vintage Aldyl‑A pipe beneath Cherry Street, migrated into the factory, and ignited inside the building.
  • I&E seeks $2,576,627 in civil penalties and more than 20 corrective actions, including expanded remote methane detection, more frequent surveys of vintage plastic pipelines, component retirements, and adoption of NTSB and PHMSA recommendations.
  • The March 24, 2023 explosion killed seven workers, injured 10 others, destroyed one factory building, damaged another and a nearby apartment building, and caused about $42 million in property damage.
  • UGI says it is reviewing the complaint and will cooperate; lawmakers touted parallel gas‑safety bills as victims’ attorneys praised the action while noting related civil litigation is moving toward a jury trial, and the case now proceeds before a PUC administrative law judge.