Massachusetts Attorney General Maura Healey reached a $56 million deal with Columbia Gas for its role in the Merrimack Valley gas disaster.
In addition, the utility company formerly owned by NiSource, was ordered to leave Massachusetts by the fall transfer all assets to Eversource, according to a release issued by the AG’s office.
The money from the settlement will provide debt relief that will help approximately 26,000 low-income customers across the company’s three service territories by wiping out nearly $15 million in accumulated debt on their gas bills.
The remaining funds will be devoted to the Merrimack Valley for clean energy programs and grants for homeowners, tenants, businesses, and municipalities.
“Today’s first-of-its-kind agreement ensures that Columbia Gas never does business in Massachusetts again, invests millions of dollars in the Merrimack Valley, and helps low-income customers pay their gas bills,” Healey wrote. “This significant result will lay the groundwork for a safer natural gas system in the region and bring the benefits of our clean energy economy to more residents.”
If approved, the assets should be transferred by Nov. 1 at which time, Eversource will be responsible for addressing any remedial actions remaining from Columbia’s pipeline safety violations.
“I want to thank Attorney General Healey for taking money out of the hands of Columbia Gas and putting it back into the impacted residents who to this day, are still trying to recover from the effects of the gas fires,” said Lawrence Mayor Dan Rivera. “This is another step towards justice, and an opportunity for our community to continue to heal. I look forward to a heating season without Columbia Gas at the helm, and with priorities that put safety of people over profit, thanks to AG Healey and her team.”
Eversource will be required to implement a comprehensive safety and reliability program, fund a heat pump pilot for customers impacted by the Northampton moratorium, and develop a clean energy analysis to ensure that its business strategies are consistent with the state’s greenhouse gas emissions reduction requirements.
Last month, Columbia Gas was ordered Tuesday to pay a $53 million criminal fine for causing a series of natural gas explosions in Massachusetts that killed one person and damaged dozens of homes.
Columbia Gas of Massachusetts was sentenced more than three months after the company pleaded guilty in federal court to causing the blasts that rocked three communities north of Boston in September 2018.
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