UGI Utilities Inc. has agreed to pay a $150,000 fine after the Pennsylvania Utility Commission found “alleged shortcomings in pipeline quality assurance and oversight” in the Lehigh Valley.
The PUC announced the settlement Thursday between UGI’s Gas Division and the PUC’s Independent Bureau of Investigation and Enforcement.
The settlement also establishes a series of measures to strengthen future construction oversight, enhance quality assurance, improve safety reporting and expand the use of operational data to safely operate natural gas distribution. UGI is also prohibited from passing the costs associated with investigating and correcting the affected construction work to customers.
“The investigation did not identify any gas leaks, explosions, fires, property damage or injuries associated with the plastic pipe fusion joints addressed in the settlement,” the PUC said.
Concerns came to light during a Pipeline Safety Division inspection of a UGI construction project in Nazareth in late 2022, the PUC said. Inspectors observed a contractor failing to follow UGI construction procedures during the installation of a plastic natural gas main.
Following that inspection, UGI reviewed additional construction projects involving the same contract personnel. Between March 2023 and July 2025, the company conducted integrity inspections at multiple projects in Allentown, Bethlehem, Nazareth and Emmaus, ultimately investigating 273 pipeline facilities, the PUC said.
The investigation identified 27 plastic butt fusion joints and 25 electrofusion joints that failed visual inspection or company construction procedures. According to the settlement, UGI excavated, removed and replaced all identified unacceptable fusion joints, and the contract employees involved are no longer permitted to perform work on UGI’s natural gas distribution system.
UGI disputed allegations that it violated Public Utility Code and federal pipeline safety regulations and did not admit to any violations as part of the settlement agreement.