Steven L BeshearGovernor

Leonard K. PetersSecretaryEnergy and Environment Cabins

Mr. Herbert MillerPresidentColumbia Gas of Kentucky Inc.2001 Mercer RoadLexington, KY 40511

Mr. Timothy McKuneOperation Compliance ManagerColumbia Gas of Kentucky Inc.2001 Mercer RoadLexington, KY 40511

Re: Fairfield Inn 9/7/2014Gas Explosion

Commonwealth of KentuckyPublic Service Commission

211 Sower Blvd.P.O. Box 615

Frankfort, Kentucky 40602-0615Telephone: (502) 564-3940

Fax: (502) 564-3460psc.l^.gov

July 9, 2015

David L ArmstrongChairman

James W. GardnerVice Chairman

Daniel E. Logsdon, Jr.Commissioner

Dear Mr. Miller and Mr. McKune:

Columbia Gas of Kentucky Inc. ("Columbia") reported the above incident onSeptember 7, 2014, to Commission investigator Bill Aitken.

KRS 278.495 grants the Commission authority to regulate the safety of naturalgas facilities owned or operated by any public utility, county, or city and used todistribute natural gas at retail. KRS 278.030 requires every utility to fumish adequate,efficient and reasonable service. KRS 278.992 establishes the penalties for violationsof any minimum safety standard adopted by the United States Department ofTransportation pursuant to the federal pipeline safety laws.

Upon review of Columbia's report and the details of the Incident, and finding noindications of compliance issues related to any Commission enforced statutes orregulations, it has been determined that no further review is needed regarding thisincident and this matter will be considered closed. Attached hereto is a copy of theCommission Staff Incident Investigative Report. As a completed investigation, thisreport is now a public record that is subject to open records requests pursuant to KRS61.872.

KentuckyUnbridledSplrttcom An Equal Opportunity Employer M/F/D

Mr. Miller and Mr. McKuneJuly 9, 2015Page 2

Public safety is always a priority of the Commission. While the Commission didnot find any violations, the Commission recommends that Columbia review this incidentto determine if there are any additional safety precautions which could be implementedto prevent this type of occurrence in the future. Columbia should also review its OriginalIncident Report to PHMSA and issue a Final Report to PHMSA, with a copy to theCommission. The Commission further recommends that Columbia review the PHMSANotice of Proposed Rule Making for Excess Flow Valves ("EFV"), which would requireEFV's to be installed on all new and renewed gas service lines in applications otherthan single-family residences and determine which procedures it will need to modify tobe in compliance with the Rule once it becomes effective.

If you have any questions, concerns or need additional information, please feelfree to contact Jonathan Beyer, Commission counsel, at (502) 564-3940.

Enclosure

ncwely.

Jerouen

jtecutive Director

PSC Letter to Columbia GasFinal Report - Fairfield Inn incident - September 7, 2014