11/05/2026 | Press release | Distributed by Public on 11/05/2026 12:37
Published on 11/5/2026
Filed under: Gas
Settlement resolves alleged pipeline construction and inspection issues while strengthening future oversight, quality assurance, safety reporting and accountability for plastic natural gas pipe installations
HARRISBURG - The Pennsylvania Public Utility Commission (PUC) today approved a settlement between the PUC's independent Bureau of Investigation and Enforcement (I&E) and UGI Utilities Inc. - Gas Division (UGI) concerning alleged shortcomings in pipeline construction quality assurance and oversight related to plastic natural gas pipe installations in several eastern Pennsylvania communities.
Following a summer public comment period, the Commission voted 5-0 to adopt a Joint Petition for Approval of Settlement filed on March 20, 2026, by I&E and UGI. The approved settlement resolves the Commission's investigation while establishing a series of measures intended to strengthen future construction oversight, enhance quality assurance, improve safety reporting and expand the use of operational data to support the continued safe and reliable operation of Pennsylvania's natural gas distribution system.
The investigation did not identify any gas leaks, explosions, fires, property damage or injuries associated with the plastic pipe fusion joints addressed in the settlement.
Settlement
Key provisions of the settlement include:
Investigation
Concerns first came to light during a Pipeline Safety Division inspection of a UGI construction project in Nazareth in late 2022, where inspectors observed a contractor failing to follow UGI construction procedures during the installation of plastic natural gas main.
Following that inspection, UGI expanded its review to additional construction projects involving the same contractor personnel. Between March 2023 and July 2025, the company conducted integrity inspections at multiple projects in Allentown, Bethlehem, Nazareth and Emmaus, ultimately investigating 273 pipeline facilities.
The investigation identified 27 plastic butt fusion joints and 25 electrofusion joints that failed visual inspection or company construction procedures. According to the settlement, UGI excavated, removed and replaced all identified unacceptable fusion joints, and the contractor employees involved are no longer permitted to perform work on UGI's natural gas distribution system.
I&E alleged that UGI violated provisions of the Public Utility Code and federal pipeline safety regulations related to pipeline construction, inspection and quality assurance. UGI disputed those allegations and did not admit to any violations as part of the settlement agreement.
The settlement also recognized UGI's cooperation throughout the investigation, including providing requested information, conducting extensive integrity inspections and remediation activities, and implementing a number of safety enhancements while the investigation was ongoing.
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Docket No.: M-2026-3051981