PUC Approves Settlement with Peoples Natural Gas Following 2022 Johnstown Pipeline Damage Incident

PUC Approves Settlement with Peoples Natural Gas Following 2022 Johnstown Pipeline Damage Incident

Published on 12/18/2025

Filed under: Gas

Commission doubles civil penalty to $50,000 and requires added protections to strengthen damage-prevention and mapping practices

HARRISBURG - The Pennsylvania Public Utility Commission (PUC) today conditionally approved a settlement with Peoples Natural Gas Company LLC (Peoples) stemming from a 2022 excavation incident in Johnstown, Cambria County, that damaged a natural gas transmission pipeline, triggered a fire, and interrupted service to more than 350 customers for more than a day.

The Commissioners voted 3-2 to conditionally approve the settlement - between Peoples and the PUC's independent Bureau of Investigation and Enforcement (I&E) - resolving an informal investigation into the company's alleged violations of state and federal pipeline safety regulations related to inaccurate mapping, inadequate excavation procedures near a transmission line, and failure to provide required advance notice of a major construction project.

As part of today's action, the Commission conditionally approved the settlement, subject to the Parties' agreement to a modification that increased the civil penalty from the $25,000 originally proposed in July 2025 to $50,000, reflecting the seriousness of the incident and the need for continued improvements to Peoples' damage-prevention practices. That $50,000 civil penalty will not be recovered from customers in future rates and will not be tax deductible.

"Any time work is performed around a high-pressure natural gas pipeline, the margin for error is very small," said PUC Chairman Steve DeFrank. "This settlement holds Peoples accountable and, more importantly, requires concrete changes in how it plans, oversees and documents excavation work - helping to better protect workers, nearby communities and the customers who rely on this system every day."

2022 Johnstown Incident

According to the investigation, on July 28, 2022, an excavator hired and supervised by Peoples was working along a natural gas transmission pipeline near Benshoff Hill Road in Johnstown when it struck and damaged a valve (appurtenance) on the line.

The incident resulted in the following:

• The damage caused a release of natural gas that was later ignited, resulting in a fire.
• The mechanical excavator became engulfed in flames and was destroyed.
• A Peoples construction inspector was struck by debris and treated for injuries.
• Natural gas service to 353 Peoples customers was disrupted for more than a day while repairs and restoration work were completed.

The investigation concluded that the maps used to locate facilities in the area did not accurately depict the damaged appurtenance; that Peoples' written procedures did not provide adequate guidance for excavation within the "tolerance zone" around underground facilities; and that the company did not provide the 30-day advance notice of a major construction project required by Commission regulations.

Safety Enhancements and Corrective Actions

As part of the Settlement, Peoples has agreed to a series of safety enhancements intended to reduce the risk of future excavation damage and strengthen oversight of higher-risk work:

• Stronger excavation procedures near pipelines - Peoples has adopted a new job procedure governing safe excavation around pipelines, including the use of prudent techniques when working in the tolerance zone around underground facilities.
  
  
• Expanded outreach and education - The company will continue and enhance outreach efforts for contractors, excavators and homeowners, including materials that highlight best practices for safe digging around gas pipelines.
  
  
• Tracking and oversight of high-risk excavators - Peoples will implement a process to identify and track "high-risk" excavators and projects, focusing additional attention and resources on those jobs to help reduce excavation-related damages.
  
  
• More inspections of higher-risk projects - Using a risk-based approach, Peoples will assign employees to inspect certain construction projects that involve higher-risk excavations or work performed by high-risk excavators.
  
  
• Improved facility locating and mapping - Peoples will use cameras and other technologies, when feasible, to verify the presence and location of valves and other appurtenances, employ soft-digging practices (such as hand-digging and vacuum excavation) where appropriate, and continue to improve its mapping and recordkeeping systems so field personnel have better access to accurate information.
  
  
• "Lessons learned" and contractor training - The company will conduct recurring "lessons learned" training sessions with field staff and review those materials with contractors, incorporating real-world examples of line hits and near-misses, as well as relevant federal safety advisories and industry best practices.
  
  
• Quality assurance/quality control for damage prevention - Peoples will establish a quality assurance/quality control component within its damage-prevention program, including metrics to track performance and compare the effectiveness of its excavation damage prevention efforts with other large operators in Pennsylvania.

The settlement follows the Commission's earlier decision in August 2025 to publish the proposed agreement in the Pennsylvania Bulletin, allowing for public comment. No comments were filed in response.

Today's order conditionally approves the settlement - subject to the Parties' acceptance of the Commission's modification to increase the civil penalty to $50,000 - and concludes I&E's informal investigation into this incident.

Reminder: Call 8-1-1 Before You Dig

The PUC reminds homeowners, businesses and contractors that calling 8-1-1 at least three business days before digging is a critical first step in preventing damage to underground utilities, including natural gas pipelines. Once lines are marked, excavators must respect the tolerance zone around those marks and use safe excavation methods to help protect workers, nearby residents and vital infrastructure.

Additional information about safe digging and damage prevention is available in the safety section of the PUC's website and from the Pennsylvania One Call System (PA One Call).

About the PUC

The Pennsylvania Public Utility Commission balances the needs of consumers and utilities; ensures safe and reliable utility service at reasonable rates; protects the public interest; educates consumers to make independent and informed utility choices; furthers economic development; and fosters new technologies and competitive markets in an environmentally sound manner.

Visit the PUC's website at puc.pa.gov for recent news releases and video of select proceedings. You can also follow us on X, Facebook, LinkedIn, Instagram and YouTube. Search for the "Pennsylvania Public Utility Commission" or "PA PUC" on your favorite social media channel for updates on utility issues and other helpful consumer information.

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Docket No.: M-2025-3052089

Contact:

• Nils Hagen-Frederiksen
  Press Secretary
  717-418-2701
  [email protected]