HARRISBURG, PA — Pennsylvania regulators are seeking $2.6 million in civil penalties against UGI Utilities over a 2023 natural gas explosion at a chocolate factory that killed seven workers and caused widespread damage. The complaint, filed by the Pennsylvania Public Utility Commission, alleges 27 safety violations tied to the company’s gas distribution system.
The March 2023 explosion at the R.M. Palmer Company facility in West Reading destroyed a factory building and a nearby apartment complex, resulting in approximately $42 million in property damage. Ten people were injured, including four seriously. Investigators determined that a plastic service component in the street allowed gas to migrate underground into the building, where it ignited after workers reported smelling gas.
Regulators are seeking corrective measures, including expanded use of remote methane detection systems, more frequent inspections of aging plastic pipelines, and improved emergency response coordination. The National Transportation Safety Board previously found that the facility lacked sufficient emergency procedures that could have prompted evacuation before the explosion.
UGI said it is reviewing the complaint and expressed sympathy for victims and their families, calling the incident a tragedy. The case will now be reviewed by an administrative law judge as regulators push for accountability and stronger safety standards.
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