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PSC fines City of Liberty, KY, for natural gas safety violations Suspends all but $10,000 of $60,000 penalty, subject to compliance with requirements for system inspections. Because system is municipally owned, it is not subject to PSC regulations as to rates, but is subject to PSC safety oversights. Click on headline for complete story By Andrew Melnykovych News from the Kentucky Public Service Commission FRANKFORT, Ky. (Tue 13 Jun 2017) - The Kentucky Public Service Commission (PSC) has fined the city of Liberty $60,000 for its repeated failures to conductleakage surveys of the city operated natural gas distribution system. In an order issued today, the PSC levied the $60,000 civil penalty but suspended $50,000 of the fine until Jan. 1, 2023, subject to Liberty's compliance with conditions set forth in the order. Those conditions include hiring a contractor to conduct annual leakage surveys through 2022, and providing regular reports to the PSC on the results of the surveys and repairs of leaks detected. An investigation conducted by the PSC found that Liberty had failed to conduct leakage surveys during most years from 2003 through 2016. During that time, Liberty completed only six of 19 required surveys. (Two surveys were required in certain years.) Furthermore, the surveys were missed despite repeated assurances from Liberty officials, following citations issued by PSC inspectors, that the surveys would be completed, the PSC said in today's order. "Liberty has a history of attempting to excuse the failure to perform the required leakage survey" by citing management changes, oversight or a lack of knowledge of the safety standard, the PSC said in today's order. Given the history of non-compliance and failure to abide by commitments, "Liberty does not have a credible justification for its failure to comply with leakage survey requirements," the PSC said. Liberty, in Casey County, owns and operates a natural gas distribution system serving about 650 customers. Because it is municipally owned, the rates and service of the Liberty gas system are not regulated by the PSC. However, the PSC has jurisdiction over the safety of the system. The PSC, under certification by the federal Pipeline and Hazardous Materials Safety Administration, enforces federal gas pipeline safety regulations for all natural gas distribution systems in Kentucky. This story was posted on 2017-06-13 10:09:46
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