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October 6, 2008

Utility faces $2 million fine

Northern Utilities could be fined $2 million for allegedly violating safety regulations over the past two years that resulted in several incidents, two of which caused homes to explode in Portland and South Portland.

The Maine Public Utilities Commission held a hearing Friday on the proposed $2 million settlement negotiated between PUC staff and Northern Utilities, a subsidiary of Bay State Gas Co. of Massachusetts, the Portland Press Herald reported. The agreement is not an admission of fault by the natural gas company, but orders the utility to invest $1.2 million in safety improvements and an $800,000 penalty fee to the PUC.

The agreement says the fine should be paid at shareholder expense, the paper reported. The commission is expected to make a decision next week on the settlement, as well as whether to allow the sale of Northern Utilities to Unitil Corp., a New Hampshire holding company.

 

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