National Fuel to Pay $700K in Settlement Over Niagara Falls Gas Explosion

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National Fuel Gas has agreed to a $700,000 settlement addressing violations connected to a gas explosion that destroyed a home in Niagara Falls on May 1st, 2024.

The New York State Public Service Commission has approved the settlement terms with National Fuel Gas Distribution Company, resolving all alleged violations related to the incident at 820 20th Street.

“The commission takes very seriously its role of ensuring the public’s safety,” Chair Rory M. Christian said Thursday. “The decision reached regarding this gas explosion clearly demonstrates that we will hold utilities and their shareholders fully accountable through enforcement actions to protect the public.”

The explosion occurred shortly after a National Fuel worker was sent to the property to unlock an exterior gas meter and restore service for a new upstairs resident. At the time, the building was a multi-family rental.

Investigators say the employee found raw sewage at the bottom of the basement stairs but did not inspect the furnace or hot water heater. Instead, the worker left the basement untouched, turned the service valve to “on,” and departed without conducting the required appliance safety checks.

Moments later, the property was rocked by an explosion, followed by a gas-fed fire. A first-floor tenant who was inside managed to escape unharmed, but the blast and flames leveled the entire structure.

According to the department’s findings, the worker should not have restored gas service given the conditions present. The investigation also concluded that the employee provided false information in company records regarding the state of the home’s appliances.

As part of the settlement, National Fuel shareholders will fund $700,000 in enhanced safety initiatives and additional employee training aimed at preventing similar incidents.

National Fuel to Pay $700K in Settlement Over Niagara Falls Gas Explosion