Pennsylvania PUC seeks $2.7 million in civil penalties from UGI over West Reading chocolate factory explosion

The Pennsylvania Public Utility Commission is accusing UGI Utilities, Inc. of multiple state and federal pipeline safety violations in connection with a fatal 2023 explosion at the R.M. Palmer Company in West Reading.

The PUC's Bureau of Investigation and Enforcement announced Wednesday that the agency has filed a formal complaint against the utility company and is seeking more than $2.5 million in civil penalties along with the enforcement of numerous corrective safety measures.

The Berks County chocolate factory explosion killed seven people and injured 10 others in March 2023. A National Transportation Safety Board investigation determined natural gas, which was being transported through a UGI Corporation-owned pipeline, leaked into a Palmer building basement. The gas ignited, resulting in the explosion and fire.

One Palmer factory building was completely destroyed and another was severely damaged. Three families were displaced from a nearby apartment building that was also damaged in the blast. According to I&E, the overall cost of the property damage was approximately $42 million.

Among the more than two dozen violations outlined in the complaint, I&E alleged that UGI failed to maintain accurate facility records and mapping for its pipeline infrastructure, didn't adequately identify and manage the risks associated with vintage plastic pipeline components, and failed to carry out sufficient emergency response communication and protocols immediately following the explosion.

I&E added UGI also claimed "failed to take all reasonable measures necessary to protect the public and maintain safe facilities," as per the Public Utility Code.

In a statement shared with CBS News Philadelphia, UGI said it is "carefully reviewing" the complaint issued by the PUC. 

"What occurred at R.M. Palmer was a heartbreaking tragedy, and our deepest sympathies remain with the victims' families, the West Reading community, and all those affected," the statement continued in part. "As UGI reviews the complaint, the Company will continue to cooperate with the PUC's investigation. UGI is committed to providing safe and reliable service to its customers and communities."

In addition to the civil penalty, I&E asked that UGI be directed to carry out more than 20 "corrective actions," including:

• Retraining first responders on the importance of immediately confirming explosions, dispatching personnel and promptly communicating with other emergency responders to coordinate their response and minimize hazards
• Increasing the leak survey frequency to one year on vintage plastic pipelines (manufactured pre-1983) in urban environments where any underground leak will likely become hazardous
• Incorporating continued surveillance to identify and replace any plastic pipeline in proximity to heat sources as needed
• Taking all appropriate action related to the recommendations as set forth in the NTSB's 2025 Pipeline Investigation Report and the 2026 Pipeline and Hazardous Materials Safety Administration's Advisory Bulletin

According to I&E, the complaint will undergo review through the PUC's adjudicatory process before the Commission's Office of Administrative Law Judge.