Maine PUC fines utility
MAINE - The Maine Public Utilities Commission fined Northern Utilities $2 million for violations of safety regulations that date back two years.
The fine follows a series of dangerous incidents, including explosions at homes in Portland and South Portland, a gas leak in Cape Elizabeth and an over-pressurization incident that caused fires in Saco.
It was assessed the same day the commission approved the sale of the company's Maine operations to Hampton, N.H.-based Unitil Corp., which serves 115,000 customers in New Hampshire and Massachusetts.
"Northern Utilities' problems were systemwide and compromised public safety," Sharon M. Reishus, chairwoman of the commission, said in a written statement. "That was not acceptable. The company's shareholders must now pay for major safety investments and management must improve its practices."
The fine is part of a settlement agreement negotiated by the PUC and Northern Utilities that does not include an admission of fault by the utility.
The commission ordered Northern Utilities to pay $1.2 million earmarked for infrastructure and public safety improvements and an $800,000 administrative penalty to the PUC. The commission will hold a separate hearing to consider how best to spend the $800,000 in the public interest, the statement said.
The penalties must be paid by company shareholders and not passed on to consumers, the PUC said.
Northern Utilities, a subsidiary of NiSource, provides natural gas to 42,000 customers in Maine and New Hampshire.
Unitil will buy the Northern and a related NiSource company, Granite State Transmission of New Hampshire, for $160 million and an estimated $25 million for natural gas inventories.
Unitil has agreed to freeze base rates in Maine for two years after the sale.
Related News

Washington Australia announces $600 electricity bill bonus for every household
PERTH - Washington Premier Mark McGowan has announced more than a million households will receive a $600 credit on their electricity account before their next bill.
The $650 million measure will form part of Thursday's pre-election state budget, which has been delayed since May because of the pandemic and will help deflect criticism by the opposition that Labor hasn't done enough to stimulate WA's economy.
Mr McGowan made the announcement on Sunday while visiting a family in the electorate of Bicton.
"Here in WA, our state is in the best possible position as we continue our strong recovery from COVID-19, but times are still…