Con Ed to pay $150M over East Harlem explosion

It’s the highest payout for a gas safety incident in state history

New York /
Feb.February 17, 2017 02:45 PM

Con Edison will pay $153.3 million to settle charges related to a 2014 gas explosion in East Harlem that killed eight people and injured 50 others.

The state’s Public Service Commission approved the settlement, the New York Post reported. It’s the highest payout for a gas safety incident in state history, according to New York governor Andrew Cuomo.

In 2016, the Public Service Commission found Con Ed had failed to make sure workers were properly trained to fuse gas pipes together, and had therefore violated safety regulations. It also failed to install valves that would have allowed workers to shut down the gas system during emergencies.

The commission will oversee a $25 million account, created with settlement funds, and will ask the public how it thinks the money should be used for ratepayers. Con Edison said it has already made changes to various technologies and increased training. The utility agreed not to make customers pay for more than $125.5 million spent on responding to gas leaks since the explosion.

Two buildings at 1644 Park Avenue and 1646 Park Avenue collapsed in the explosion.  The owner of a three-family home at 1645 Park Avenue, Peter Costello, this week filed a lawsuit against the owners of the two destroyed buildings for nearly $2 million, over damages and loss of rent. Costello is arguing the gas leak was caused by negligence from the owners.

In 2014, residents near the site of the explosion filed a suit against the city, alleging they were given the green light to return to homes covered in asbestos dust. [NYP]Miriam Hall


Related Articles

arrow_forward_ios
Kirk Goodrich, president of Monadnock Development, is opposed to the bill sponsored by Bran Lander. (Getty, Monadnock Development)

Council bill favoring nonprofits for affordable housing will hurt minority-led firms: developers

Council bill favoring nonprofits for affordable housing will hurt minority-led firms: developers
Sen. Charles Schumers aid President-elect Joe Biden agreed to assist NYC. (Getty)

NYC loses $2.5B in property taxes, gets $1B from FEMA

NYC loses $2.5B in property taxes, gets $1B from FEMA
President-elect Joe Biden's relief plan focuses on the coronavirus and opening schools. (Getty)

Biden’s $1.9T package would extend eviction ban, boost rent relief

Biden’s $1.9T package would extend eviction ban, boost rent relief
Gov. Andrew Cuomo announced that a major development surrounding Penn Station. (Getty)

Cuomo adds housing to $51B Midtown West project

Cuomo adds housing to $51B Midtown West project
Eric Trump and Donald Trump Jr. with President Donald Trump (Getty)

These are the companies dumping the Trump Organization

These are the companies dumping the Trump Organization
Ray McGuire photographed by Axel Dupeux.

The Closing: Ray McGuire

The Closing: Ray McGuire
Sen. Jabari Brisport (Photo via Jabari for State Senate; iStock)

Socialist notches key NY Senate appointment

Socialist notches key NY Senate appointment
Airbnb Brain Chesky and President-elect Joe Biden (Getty)

Airbnb cancels all DC-area bookings for inauguration week

Airbnb cancels all DC-area bookings for inauguration week
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...