State regulators approve $2 million settlement with Cascade Natural Gas

Media contact: [email protected] or 360-664-1116
Docket number: PG-230800

LACEY, Wash - On Jan. 29, the Utilities and Transportation Commission approved an order adopting a settlement agreement between Cascade Natural Gas Corporation (Cascade), commission staff and other parties related to multiple pipeline safety violations. These violations, identified during a commission investigation, resulted in the release of liquefied natural gas (LNG) and a fire that caused injuries and one death.

The commission imposed a $2 million penalty against Cascade, suspending $250,000 of the amount on the condition that the company complete additional compliance actions outlined in the settlement. Cascade may not recover the penalty costs from customers.

The settlement terms also require Cascade to:

1. Contract with a third party to conduct an audit of their safety management program and correct any deficiencies identified.

1. Allow staff and the commission to provide input throughout the audit process.

1. Create a new company policy to oversee and manage contractors.

1. Notify the commission if LNG is used in future operations.

Cascade must pay the unsuspended amount of $1,750,000 within thirty days from the order's effective date. In support of the settlement, the company states it understands the seriousness of the incident and has taken steps to improve contractor oversight and safety protocols. Cascade fully cooperated with the investigation and is committed to preventing similar incidents in the future.

Through the work of its pipeline safety division, including the investigation and resolution of the complaint in this incident, the commission is committed to ensuring pipeline operators maintain the highest safety standards in Washington state.

About the UTC Pipeline Safety Program
Established by the Legislature in 1955, the UTC Pipeline Safety Program regulates the safety practices of 41 pipeline operators and conducts safety inspections on more than 47,000 miles of natural gas and hazardous-liquid pipelines in Washington. The UTC also regulates the rates and services of investor-owned electric utilities, telecommunications companies, natural gas, and water companies in the state. For more details, visit the UTC Pipeline Safety Program webpage.

About Cascade Natural Gas
Kennewick-based Cascade Natural Gas provides natural gas service to over 222,000 customers in 67 communities across Washington state.

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