Central Hudson Admits Failures, Agrees to Pay Massive Penalty

Central Hudson Gas & Electric Corporation has agreed to pay a $5 million penalty for safety failures related to the 2023 natural gas explosion in Wappingers Falls, NY.

Back in November of 2023, a massive explosion rocked the Village of Wappingers Falls, injuring 10 people and destroying residences along Brick Row in the Dutchess County village.

Central Hudson Admits Safety Failures

The New York State Public Service Commission (PSC) has announced that it has accepted and adopted the terms and conditions of a joint settlement to resolve all of the violations committed by Central Hudson Gas & Electric Corporation related to the 2023 gas explosion in Wappingers Falls, NY.

Under the terms of the settlement agreement adopted by the Commission, Central Hudson admitted it did not provide safe and adequate service and further agreed to pay a $5 million penalty payment for ratepayer benefit. Central Hudson will also establish a gas safety protocol remediation fund between $2.5 million and $3.5 million for safety measure enhancements to prevent similar incidents in the future.

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"The responsibility and obligation to make the financial payment rests with the company shareholders, not ratepayers," the PSC said.

Investigation Uncovers Safety Failures Surrounding Explosion in Wappingers Falls, NY

A lengthy investigation conducted by the Department of Public Service found that on November 2, 2023, Central Hudson’s contractors struck an unmarked natural gas service line and caused a high-pressure gas leak, leading to an explosion and fire at 7 Brick Row.

A year later, the department released a report alleging that Central Hudson had knowledge of the active natural gas service line before the explosion on Brick Row. It also stated that Central Hudson apparently did not include this critical information in the project binder given to its contractors for the excavation project along Brick Row.

"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."

We did reach out to Central Hudson for a comment regarding the agreement, but haven't heard back yet. When we do, we will update this article.