Columbia Gas To Pay $56 Million To Settle State Case

ANDOVER, MA — Columbia Gas will pay $56 million and leave Massachusetts ahead of the coming winter, under a deal with the state. The deal resolves the state Attorney General's investigation into the company's role in the Sept. 2018 Merrimack Valley Gas Explosions.

The deal was filed Thursday and needs approval from the Department of Public Utilities.

The fine, larger than the $53 million federal fine, will go to debt relief for low-income customers and energy efficiency 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 wre unable to return to their homes for months. The National Transportation Safety Board's final report on the accident, released in October, found that "weak engineering management" by Columbia Gas caused the deadly explosions.

The new deal codifies plans announced in February for Columbia Gas of Massachusetts to be sold to Eversource. Both the federal and state deals require the company to leave the state, but the state deal specifies that it will be transferred to Eversource on Nov. 1.

Eversource will be required to carry out a comprehensive safety program and fix any remaining pipeline safety violations, among other measures.

The $56 million fine will go to two funds:

• The Energy Relief Fund will eliminate nearly $15 million in gas bill debt for around 26,000 low-income customers
• The Merrimack Valley Renewal Fund will go to clean energy programs and grants for homeowners, renters, businesses and municipalities. The Attorney General's Office and the Department of Energy Resources will implement the fund.

Eversource will also extend rates set in 2015 through Nov. 2021 and spread out the next rate increase over a two year period.

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