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Central Hudson Gas & Electric Corporation has reached a multi-million dollar settlement with the New York State Public Service Commission following a natural gas explosion in Wappingers Falls in November 2023. The explosion injured 15 people and destroyed a block of homes. As part of the settlement, Central Hudson admitted to not providing safe and adequate service, agreeing to pay a $5 million penalty for the benefit of ratepayers. Additionally, the company will establish a gas safety protocol remediation fund between $2.5 million and $3.5 million to enhance safety measures and prevent future incidents.
The explosion occurred when contractors struck an unmarked natural gas line, causing a high-pressure leak that led to the blast at 7 Brick Row. The Department of Public Service found that Central Hudson had prior knowledge of the active gas line but failed to include this information in the project binder for the contractors. The settlement requires Central Hudson's shareholders, not ratepayers, to bear the financial burden of the penalties.
Central Hudson spokesperson Réal Hamilton-Romeo expressed regret over the incident, stating the company is focused on rebuilding trust through transparency and accountability. The settlement also addresses the pending civil cases against Central Hudson, with families and individuals affected by the explosion pursuing legal action for the injuries and damages sustained.
The settlement comes amid a broader scrutiny of Central Hudson's operations, including a new rate plan that has drawn criticism from New York Governor Kathy Hochul, who emphasized the need for utilities to prioritize ratepayer affordability.