The settlement includes the payment of a $150,000 penalty and these other key provisions--
-- 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.
Background
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.
Click Here for the PUC announcement.
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[Posted: November 5, 2026] PA Environment Digest
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