Massachusetts gas explosions cost utility more than $1B

BOSTON — The natural gas explosions and fires in Massachusetts last September have cost Columbia Gas more than $1 billion.

NiSource, Columbia's parent company, said in a financial report filed this week that $757 million of that was for third-party claims against the utility, including property damage. Another $266 million was for other expenses, including the workers needed during the recovery effort.

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The financial losses do not include the cost of pipeline replacement, or the costs of settling lawsuits, or fines and penalties.

The explosions in Lawrence, Andover and North Andover killed one person, injured about two dozen, damaged more than 100 structures and left thousands without heat or hot water for weeks.

Lawrence Mayor Dan Rivera told Boston 25 News: "The loss of $1 billion from Columbia gas is nothing compared to the loss of life and property that the three communities in Greater Lawrence have lost due to the gas disaster of 9/13. Someone retired with full benefits, and no one has been fired or disciplined for what happened that day. If all they lose is money, why would they change anything? They can just chalk it up as the cost of doing business."

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Lyne Savage, North Andover acting Town Manager said: "The Town of North Andover is aware that the recovery and other costs associated with the September 13, 2018 gas disaster that affected North Andover and the Greater Lawrence area have exceeded to date $1 billion. We expect those costs will climb. Although NiSource is insured for approximately $1.1 billion for claims related to the event, we accept that to some degree their ratepayers will share part of the cost of recovery. That is an unfortunate, but unavoidable truth. With that being said, we applaud the company’s initiative to replace all of the main lines in the Greater Lawrence area and to implement a safety management system (SMS) to reduce the risk of a similar disaster anywhere else a NiSource gas company does business."

The disaster remains under investigation by the National Transportation Safety Board, but was blamed on over-pressurized gas lines.

Governor Baker's Office says the administration opposes the company passing costs onto customers:

"The Baker-Polito Administration expects Columbia Gas to completely fulfill its obligation to the residents and businesses affected by the tragedy in Merrimack Valley, and opposes Columbia Gas passing any costs on to ratepayers associated with any wrongdoing of the company related to the gas explosions in Merrimack Valley."

Boston 25 News reached out to Columbia Gas multiple times for comment and has not yet heard back. 

Associated Press