The New York State Public Service Commission has approved a settlement with Central Hudson Gas & Electric Corporation regarding a 2023 gas explosion in the state. The company admitted it failed to provide safe and adequate service and will pay a $5 million penalty for the benefit of ratepayers. In addition, Central Hudson is required to create a gas safety protocol remediation fund between $2.5 million and $3.5 million aimed at improving safety measures to prevent similar incidents in the future. The cost of these payments will be borne by company shareholders rather than customers.
Commission Chair Rory M. Christian stated, “The Commission’s paramount concern is protecting the public and ensuring safety throughout our energy distribution systems. Enforcement actions hold utilities and their shareholders accountable for violations of the Public Service Law.”
According to an investigation by the Department of Public Service, on November 2, 2023, contractors working for Central Hudson struck an unmarked natural gas service line, resulting in a high-pressure leak. This incident led to an explosion at 7 Brick Row minutes later, causing severe injuries—including among children—and damaging other homes along Brick Row.
The Department’s report from October 2024 indicated that Central Hudson had actual knowledge that there was an active natural gas service line at 7 Brick Row before the explosion occurred. The report also found that this information was not included in materials provided to contractors for the excavation project and that the line was not visually marked as required before work began.
Further details about today’s decision are available through the Commission Documents section on the New York State Public Service Commission website (www.dps.ny.gov) by searching Case Number 24-G-0483.
