Public Service Commission: National Grid to Blame for 2015 Water Mill House Explosion

National Grid’s Long Island gas company is facing safety violations and major financial penalties following a two-and-a-half-year investigation into an explosion that destroyed a house under in construction in Water Mill in 2015, seriously injuring two workers. The commission found the public utility company did not shut off the gas service to the house despite being asked to do so by the customer two months before the explosion. 

Two construction workers were doing demolition work inside the house at 21 Old Country Road, off Montauk Highway, on Feb. 11, 2015, when they struck the natural gas facilities in the basement, causing gas to be released. The house exploded in flames. The workers suffered serious, but non-life-threatening, injuries, including burns, and were airlifted to Stony Brook University Hospital, where there is a burn center. 

The New York State Public Service Commission issued an order on Thursday requiring KeySpan Long Island, which does business as National Grid, to show why the commission should not begin a penalty action in civil court or before the commission. An investigation into the explosion, conducted by commission staff, found that National Grid failed to follow regulations regarding discontinuance of gas service, a statement from the commission said on Thursday.

The investigation determined that the cause of the explosion was the existence of gas service and that the gas company violated a regulatory requirement that a locking device be installed at the meter shut-off valve whenever a customer discontinues service. "Instead, National Grid simply removed the customer’s name from the account when they called to close the account. The customer specifically told National Grid that the new owner would not need gas service for the foreseeable future and yet National Grid still failed to lock the service," the statement said.

The explosion occurred two months after the former owner asked for service be terminated on Dec. 11, 2014, after selling the property. 

In a statement Thursday afternoon, National Grid said the safety of customers, communities, and employees is the priority. "We take the issues in the Commission's press release very seriously and will respond to the Commission within the timeframe required by the order. We believe we have fully addressed the issues identified as part of our commitment to continuously improve the safety of our gas system. We cannot comment further on pending proceedings," they said.

“The commission has zero tolerance for violations of its gas safety standards,” John B. Rhodes, the commission chairman, said in a statement. “Under tougher penalties for violations implemented by Gov. Andrew M. Cuomo, if National Grid is found to have violated our regulations, it could face a penalty to be paid by shareholders.”

The company faces a fine of $100,000 per day the service continued from the date the customer said service was no longer needed. National Grid has 30 days to respond. 

According to the commission, it is the second time it has found National Grid failed to shut off service. At an explosion on Aug. 10, 2014, in Schenectady, N.Y., there were no injuries. National Grid agreed on a settlement of $500,000 to ratepayers. The settlement also included an outreach program to residents of the neighborhood in which the explosion occurred to reassure and inform them, according to news reports. 

Total damages, according to the staff report, were $500,050. 

The decision is available online at www.dps.ny.gov and by looking up the case number 15-G-0298 in the input box labeled "Search for Case/Matter Number."