ALBANY – Con Edison has agreed to a $153.3 million settlement with state regulators in the case of the 2014 East Harlem gas explosion that killed eight people.
The agreement between the Public Service Commission and Con Edison is the largest gas safety-related settlement in New York history and will ensure that the utility — and not ratepayers — pay for repairs to its gas distribution system, officials announced Thursday.
“The East Harlem explosion was devastating and entirely avoidable,” Gov. Cuomo said. “This landmark action is a pointed reminder to the energy companies of their awesome responsibility to maintain safety first and foremost.”
Under the settlement, the bulk of the funds — about $125 million — will be used to cover gas leak repairs Con Edison has made to its system since the East Harlem explosion. Such expenses would normally be charged back to ratepayers.
An additional $25 million will be used to fund direct aid to Con Edison gas customers. The commission will determine how to use the money after Con Edison solicits ideas from the community.
The settlement comes after the PSC, following a 20-month investigation of the deadly blast, found that Con Ed failed to properly install a gas pipe leading to the Park Ave. building and was not properly certifying its workers and contractors in the “plastic fusion” connections used at the site.
Commission members accused Con Edison of 11 violations of gas-safety regulations.
The settlement announced Thursday does not impact civil lawsuits brought against Con Edison related to the blast.
“The East Harlem tragedy and ensuing investigations by Con Edison and other agencies have led to significant safety improvements and heightened public awareness,” Con Ed said in a statement. “Today’s agreement will enhance those efforts even further.”
