Pennsylvania approves $150,000 UGI settlement over alleged pipeline defects

Pennsylvania regulators unanimously approved a settlement requiring UGI Utilities to pay a $150,000 penalty over alleged failures in oversight of plastic natural-gas pipe installation in the Lehigh Valley. The investigation began after inspectors found a contractor disregarding UGI procedures in Nazareth in late 2022; subsequent inspections examined 273 pipeline facilities across Allentown, Bethlehem, Nazareth and Emmaus and flagged 27 butt-fusion joints and 25 electrofusion joints for defects or procedural problems. UGI removed and replaced all identified unacceptable joints, and the two contractor employees associated with the investigated projects are barred from working on UGI gas lines. Regulators reported no related leaks, fires, explosions, property damage or injuries, and UGI cannot charge customers for investigation or repair costs. The settlement also requires stronger construction quality controls, safety reporting, operational data collection and regulatory reporting; UGI disputed that it violated state law or federal pipeline safety rules and did not admit wrongdoing.