ALBANY – Con Ed has agreed to pay $153.3 million to settle charges stemming from the 2014 deadly East Harlem gas explosion.
The blast killed eight and injured 50.
The settlement, approved on Thursday by the state’s Public Service Commission, marks the highest payout for a gas safety incident in New York State history, according to Gov. Cuomo.
“This landmark action is a pointed reminder to the energy companies of their awesome responsibility to maintain safety first and foremost,” he said
The Public Service Commission will oversee a $25 million account, created with settlement funds, and seek public input as to how to put the money to use for ratepayers.
The remainder will go toward gas safety education, repairs for leaks, and covering expenses for businesses and residents affected by the blast.
Last year, the commission found that Con Ed violated safety regulations by failing to ensure workers were properly trained to fuse gas pipes together.
It also found inadequate supervision and record-keeping.
The utility further failed to install valves that would have allowed workers to shut down the gas system during emergencies, according to the commission.
The utility agreed not to make customers cover more than $125.5 million spent on responding to gas leaks since the East Harlem blast.
Con Ed had already enhanced workers’ training and inspections, strengthened the way it fuses pipes together, replaced leak-prone pipes and conducted more surveys to identify gas leaks.
If the utility fails to improve safety, the state can impose financial penalties, including lowering its gas revenues by $200 million over three years, under a rate agreement.
Con Ed spokesman Philip O’Brien issued a statement saying the utility has made significant improvements since the explosion.
“The East Harlem tragedy and ensuing investigations by Con Edison and other agencies have led to significant safety improvements and heightened public awareness. Today’s agreement will enhance those efforts even further. Since that event, we have launched or expanded many proactive safety measures,” the statement said.
“We fund an effective public awareness campaign called `Smell Gas, Act Fast.’ We continue performing monthly gas leak patrols of our entire gas distribution system. We worked closely with the city to enact new legislation governing the inspection of gas piping in buildings and encouraging the development of methane detectors. We have established enhanced response procedures with the Fire Department. We are working closely with the city on coordinating excavations of street infrastructure projects.”
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