State Approves $56 Million Columbia Gas Settlement

ANDOVER, MA — The Massachusetts Department of Public Utilities approved Columbia Gas's $56 million state settlement Wednesday, the department announced.

Columbia Gas will pay $56 million for its role in the 2018 Merrimack Valley gas explosions, leave the state and transfer its assets to Eversource Energy. The deal resolves investigations by the utility regulator and the state Attorney General into the company's role in the Sept. 2018 Merrimack Valley Gas Explosions.

Part of the fine, larger than the $53 million federal fine, will go to debt relief for roughly 26,000 low-income customers, erasing about $15 million in debt.

The remainder will go to a Merrimack Valley Renewal Fund, to fund clean energy programs in Andover, North Andover and Lawrence.

The explosions on Sept. 13, 2018, killed one, injured 22, and damaged 131 structures in Andover, Lawrence and North Andover. Many people were unable to return to their homes for months. The National Transportation Safety Board's final report on the accident, released in October 2019, found that "weak engineering management" by Columbia Gas caused the deadly explosions.

“Our approval of this settlement ensures that Columbia Gas is held accountable for the tragic gas incident in the Merrimack Valley, and provides needed support to the impacted communities and low-income residents,” said Department Chairman Matthew Nelson in a statement. “With today’s Order, the Department of Public Utilities remains committed to vigorous oversight of utilities and the safety of the Commonwealth’s natural gas system.”

The department held public hearings and solicited written comments on the deal before finding that it was a just result.

Eversource is expected to take over the company's assets on Nov. 1, and will be required to implement a safety program and address any needed actions to resolve Columbia Gas pipeline safety violations from the explosion.

Christopher Huffaker can be reached at 412-265-8353 or chris.huffaker@patch.com.