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LOUISVILLE, Ky. (WDRB) -- The State of Kentucky has ordered LG&E to pay $125,000 in a settlement of alleged safety violations that were uncovered after a Dec. 6, 2011 natural gas explosion that destroyed a home on River Trail Place, near Cooper Chapel Road.
After the explosion, fire investigators determined that a water leak put a hole in a gas main, causing the leak.
"We're happy to have reached a mutually-agreeable resolution with the Kentucky Public Service Commission, one that puts this matter behind us," said LG&E spokesperson Brian Phillips. "This was an unfortunate event, and we're just grateful that no one was hurt."
PSC spokesperson Andrew Melnykovych said, "In terms of dollars, it's the biggest fine that has ever been paid to the PSC in connection with a safety violation."
It could get bigger.
According to a news release, another $125,000 in penalties is suspended, pending LG&E's completion of several requirements set forth in a settlement agreement approved Tuesday by the state's Public Service Commission.
Both the $125,000 payment and the $250,000 total penalty are the largest ever assessed by the PSC in a safety case. The maximum possible fine in this case was $500,000.
In an order issued on Tuesday, the Public Service Commission noted that LG&E has since taken a number of steps to improve training and emergency response.
The 2011 explosion destroyed one home on River Trail Place and damaged several others. No one was injured, but a dog was killed.