Deadly West Reading chocolate factory explosion: PUC seeks $2.57M penalty against UGI

HARRISBURG - Pennsylvania’s Public Utility Commission has filed a formal safety complaint against UGI Utilities, Inc. following a deadly natural gas explosion at the R.M. Palmer chocolate factory in West Reading that killed seven workers and injured ten others in March 2023.

Investigation into the West Reading explosion

What we know:

The PUC’s Bureau of Investigation and Enforcement is seeking $2,576,627 in civil penalties and a series of corrective actions after finding multiple violations of state and federal pipeline safety rules by UGI.

The complaint alleges UGI failed to maintain accurate records, did not properly manage risks from aging plastic pipelines, and lacked adequate emergency response procedures for the gas system serving the factory.

The explosion destroyed one factory building, severely damaged another, and displaced several families from a nearby apartment building. In total, seven workers were killed, four people suffered serious injuries, and six others were injured. The property damage was estimated at $42 million, according to the PUC.

Proposed reforms and safety improvements

Why you should care:

The PUC is calling for UGI to expand leak detection technology, retire aging pipeline components, increase leak surveys in urban areas, and improve emergency response and risk management for older pipelines.

Investigators say the explosion was caused by gas leaking from a retired plastic service tee connected to a vintage pipeline, which then migrated underground and ignited inside the factory. 

The National Transportation Safety Board also pointed to UGI’s failure to identify and manage risks from nearby heat sources and aging infrastructure as contributing factors.

The PUC’s complaint lists 27 alleged violations, including not accounting for elevated ground temperatures from a leaking steam pipe and not taking all reasonable measures to protect the public.

UGI’s response and public safety message

What they're saying:

"What occurred at R.M. Palmer was a heartbreaking tragedy, and our deepest sympathies remain with the victims’ families, the West Reading community, and all those affected," said UGI Utilities, Inc. in a statement.

UGI said it is reviewing the complaint and will continue to cooperate with the PUC’s investigation. 

The company emphasized its commitment to safety and public education, urging anyone who smells natural gas to evacuate immediately and call UGI or 911 from a safe distance.

The next steps in the enforcement process

The complaint will move through the PUC’s formal adjudicatory process, where UGI can respond to the allegations before a final decision is made on penalties and corrective actions.

The PUC says the goal is to strengthen pipeline safety oversight and prevent future tragedies involving aging gas infrastructure.