National Fuel Gas agrees to $700K settlement over Niagara Falls explosion

Rory M. Christian Chair and CEO at New York State Public Service Commission New York State Public Service Commission
Rory M. Christian Chair and CEO at New York State Public Service Commission - New York State Public Service Commission
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National Fuel Gas Distribution Company (NFG) has agreed to pay $700,000 as part of a settlement with the New York State Public Service Commission following a gas explosion at a Niagara Falls residence in 2024. The Commission approved the terms of the agreement, which resolves all alleged violations by NFG related to the incident.

Commission Chair Rory M. Christian stated, “The Commission takes very seriously its role of ensuring the public’s safety. The decision reached regarding this gas explosion clearly demonstrates that we will hold utilities and their shareholders fully accountable through enforcement actions to protect the public.”

The explosion occurred on May 1, 2024, at 820 20th Street in Niagara Falls. According to investigators, an NFG employee was sent to restore natural gas service for a new resident in a multi-family rental property. Upon arrival, the employee encountered raw sewage at the basement stairs but did not enter to inspect the furnace or hot water heater. Instead, without performing required appliance safety checks, the employee turned on the gas meter service valve and left.

Shortly after this action, an explosion and fire destroyed the building. A first-floor resident who was inside at the time escaped but suffered injuries from the blast.

A Department investigation found that under these circumstances, turning on the gas meter was improper and that company records were misrepresented regarding appliance conditions in the residence. As part of the settlement, NFG shareholders will fund enhanced safety measures and training intended to prevent similar incidents.

Further details about today’s decision can be accessed by searching Case Number 25-G-0202 on www.dps.ny.gov.



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