ALBANY, N.Y. (AP) -- State utility regulators said Wednesday that Consolidated Edison of New York probably wasn't managing its underground steam system properly before an explosion last summer, and they might not allow the company to pass repair costs on to consumers.
After reviewing utility consultant reports on the July 18 incident -- when a pressure buildup ruptured a pipe near Grand Central Terminal -- the state Public Service Commission said the company "was, or should have been, aware of unsafe conditions,'' particularly at that location.
One woman died of a heart attack while running from the geyser of steam and debris. Dozens of other people were hurt.
The commission also ordered Con Ed to stop using a leak sealant implicated in the explosion or prove why it should be allowed to continue using the material.
Consolidated Edison's vice president of central engineering, Ron Bozgo, told the New York Daily News the utility plans to use the sealant only with top executives' approval and it will be quicker to replace the leaking pipes instead of patching them.
After the commission issued its order Wednesday, a Con Edison spokesman said the company believes it is already taking actions to enhance the safety and reliability of the steam system.
"The company also will work with the Public Service Commission and commission staff to address their questions or concerns,'' said spokesman Bob McGee.
The commission told Con Ed it must prove within 10 days that adequate system surveillance and response procedures were in place prior to the explosion or the regulators will start an investigation that could ultimately bar the company from passing the repair costs on to consumers.
"The commission finds there is cause to inquire as to the reasonableness and adequacy of Con Edison's steam system procedures,'' said commission Chairman Garry Brown.
Brown said the agency's Department of Public Service staff is conducting its own investigation of the steam explosion, which may lead to further enforcement or other actions.
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