PUC Approves Settlement with UGI Related to Plastic Natural Gas Pipe Installation Practices

PUC Approves Settlement with UGI Related to Plastic Natural Gas Pipe Installation Practices

Published on 11/5/2026

Filed under: Gas

Settlement resolves alleged pipeline construction and inspection issues while strengthening future oversight, quality assurance, safety reporting and accountability for plastic natural gas pipe installations

HARRISBURG - The Pennsylvania Public Utility Commission (PUC) today approved a settlement between the PUC's independent Bureau of Investigation and Enforcement (I&E) and UGI Utilities Inc. - Gas Division (UGI) concerning alleged shortcomings in pipeline construction quality assurance and oversight related to plastic natural gas pipe installations in several eastern Pennsylvania communities.

Following a summer public comment period, the Commission voted 5-0 to adopt a Joint Petition for Approval of Settlement filed on March 20, 2026, by I&E and UGI. The approved settlement resolves the Commission's investigation while establishing a series of measures intended to strengthen future construction oversight, enhance quality assurance, improve safety reporting and expand the use of operational data to support the continued safe and reliable operation of Pennsylvania's natural gas distribution system.

The investigation did not identify any gas leaks, explosions, fires, property damage or injuries associated with the plastic pipe fusion joints addressed in the settlement.

Settlement

Key provisions of the settlement include:

• Strengthened accountability by requiring UGI to pay a $150,000 civil penalty while prohibiting recovery from customers of costs associated with investigating and correcting the affected construction work.
  
  
• Enhanced construction oversight through expanded quality assurance measures, reinforced inspection practices and improved procedures for identifying and correcting unacceptable plastic pipe fusion installations before they are placed into service.
  
  
• Improved safety reporting and operational awareness by expanding documentation of plastic fusion installations and failures, increasing the use of GPS location data for new plastic fusion joints where practical, and strengthening data collection to support future inspections, investigations and construction oversight.
  
  
• Enhanced commitment to continuous safety improvement by incorporating additional analysis of plastic pipe fusion performance into UGI's integrity management and risk assessment programs, helping identify trends, improve construction practices and reduce future risks across the distribution system.
  
  
• Strengthened regulatory oversight and transparency by continuing detailed reporting of fusion failures to the Commission's Pipeline Safety Division and documenting compliance with the settlement's required safety enhancements.
  
  

Investigation

Concerns first came to light during a Pipeline Safety Division inspection of a UGI construction project in Nazareth in late 2022, where inspectors observed a contractor failing to follow UGI construction procedures during the installation of plastic natural gas main.

Following that inspection, UGI expanded its review to additional construction projects involving the same contractor personnel. Between March 2023 and July 2025, the company conducted integrity inspections at multiple projects in Allentown, Bethlehem, Nazareth and Emmaus, ultimately investigating 273 pipeline facilities.

The investigation identified 27 plastic butt fusion joints and 25 electrofusion joints that failed visual inspection or company construction procedures. According to the settlement, UGI excavated, removed and replaced all identified unacceptable fusion joints, and the contractor employees involved are no longer permitted to perform work on UGI's natural gas distribution system.

I&E alleged that UGI violated provisions of the Public Utility Code and federal pipeline safety regulations related to pipeline construction, inspection and quality assurance. UGI disputed those allegations and did not admit to any violations as part of the settlement agreement.

The settlement also recognized UGI's cooperation throughout the investigation, including providing requested information, conducting extensive integrity inspections and remediation activities, and implementing a number of safety enhancements while the investigation was ongoing.

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Docket No.: M-2026-3051981

Contact:

• Nils Hagen-Frederiksen
  Press Secretary
  717-418-2701
  [email protected]
• David Hixson
  Deputy Press Secretary
  717-772-2766
  [email protected]