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PUCO orders Duke to pay $500K fine for apartment complex explosion

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Staff Report Updated 9:13 PM Wednesday, January 18, 2012

CINCINNATI — The Public Utilities Commission of Ohio approved an agreement Wednesday that requires Duke Energy Ohio to pay a fine of $500,000 and to take steps to improve compliance with natural gas pipeline safety standards following the investigation of a November 2010 apartment explosion in Lebanon.

Ten apartment units were destroyed and five people were injured when the explosion occurred Nov. 2, 2010 at the Steeplechase Apartments on Ohio 123. Ten units in the nearby apartment building also were damaged. Property damage was estimated at $1 million.

In its investigation, PUCO staff reported that Duke’s contractor, Scope Services, Inc., failed to properly re-establish natural gas service to an apartment. The source of the explosion and subsequent fire was an uncapped half-inch supply pipe in the apartment laundry room.

The PUCO said the Scope Services employee failed to follow procedures for re-establishment of gas service and failed to investigate when a resident of the apartment reported the smell of gas. Hours later, when the apartment resident attempted to light a cigarette, the structure exploded.

PUCO staff concluded that the explosion and fire resulted from Duke’s failure to maintain proper procedures, including the requirement to perform a pressure test on a house line prior to re-establishing service when gas service had been shut off for 30 days or more.

Duke also failed to provide adequate oversight of contractor training regarding re-establishing gas service and responding to customers complaints of gas odor, according to the report.

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