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You are here: Home / Insurance News | Massachusetts / News | Miscellaneous / Columbia Gas Agrees To Compensate For Losses From Merrimack Valley Gas Emergency

Columbia Gas Agrees To Compensate For Losses From Merrimack Valley Gas Emergency

September 25, 2018 by AC Editor

Agency Checklists, MA Insurance News, Mass. Insurance News, Merrimack Valley Gas Incident, Columbia Gas of Mass. incident, Will Columbia Gas cover losses in Merrimack Valley?
Governor Baker declaring a state of emergency after the Merrimack Valley Gas Incident

Andover’s Town Manager Flanagan, Governor Baker’s office, and other municipal officials brokered the agreement with Columbia Gas

The Town of Andover announced on September 22nd that an agreement from Columbia Gas has been secured to compensate the company’s customers for any losses related to the Merrimack Valley Gas Emergency. The following is an official statement by Columbia Gas that was issued on the Town’s website:

Columbia Gas will reimburse residential customers for reasonable costs of permanently switching to an alternative fuel source (e.g. electric or oil) for appliances or systems that were fueled by natural gas prior to the outage. If you wish to temporarily switch to appliances and systems that are fueled by sources other than natural gas for the duration of the outage, and then return to gas-fueled appliances, Columbia Gas will reimburse for reasonable costs associated with both the temporary solution as well as the return to gas-fueled appliances and systems.”

Residents may elect to contract directly with an appropriate certified licensed contractor to install appliances and systems that are fueled by an alternative fuel source (e.g. electric or oil). If you do hire such a contractor, we request the licensed contractor provide you detailed receipts, including your name, service address, make/model of parts, and labor, so that Columbia Gas may reimburse you for reasonable costs.”

In addition to the above, Columbia Gas also has agreed in writing to compensate those losses stemming from the incident including:

  • Bodily injury
  • Damage to property
  • Disruption of businesses
  • Inconvenience and disruption of everyday activities caused by loss of use of gas service
  • Efforts to limit or mitigate the loss, such as switching from gas hot water heaters to electric or temporary solutions to heat, hot water, and cooking

Any residents who have suffered any of the above losses should initiate the claims process by calling the Columbia Gas claims hotline at 1-800-590-5571.

“Columbia Gas has put this commitment in writing. Click here to view Columbia’s outline of the claims process”

From The City of Lawrence website

The city of Lawrence also announced the agreement along with a few more general guidelines on the types of losses covered:

Residential

  • Residential customers having a claim for losses related to this incident may come into one of the Claim Centers to immediately receive a pre-paid card worth up to $300 to assist with their immediate needs. Claims Centers are located in Lawrence, North Andover, and Andover.
  • Residential customers may also call the claims hotline at 1-800-590-5571 to establish their claim. For all residential claims, an adjuster will be assigned who will follow up with the resident to evaluate all documented losses, as well as whether any further assistance is needed to address the resident’s immediate needs. Columbia Gas will work with the resident to make the claim process as easy as possible.
  • Columbia Gas will reimburse residential customers for reasonable costs of permanently switching to an alternative fuel source (e.g. electric or oil) for appliances or systems that were fueled by natural gas prior to the outage. If you wish to temporarily switch to appliances and systems that are fueled by sources other than natural gas for the duration of the outage, and then return to gas-fueled appliances, Columbia Gas will reimburse for reasonable costs associated with both the temporary solution as well as the return to gas-fueled appliances and systems.
  • Residents may elect to contract directly with an appropriate certified licensed contractor to install appliances and systems that are fueled by an alternative fuel source (e.g. electric or oil). If you do hire such a contractor, we request the licensed contractor provide you detailed receipts, including your name, service address, make/model of parts, and labor, so that Columbia Gas may reimburse you for reasonable costs.

Businesses

  • Businesses impacted by this event will be provided an immediate advance to assist with ongoing business expenses with minimal paperwork (e.g., name of owner, business name, identification, nature of losses being claimed, and a rough estimate of losses).
  • The most expeditious manner for business claims to be processed is to call the 24-hour claims at 1-800-590-5571, to establish a claim and begin the process to obtain any needed advance.
  • All compensation advanced to businesses in need will be incorporated into each business owner’s claim.
  • Each business claim will be assigned to an adjuster who can assist business owners regarding appropriate documentation of business losses and impacts, as well as whether the business needs an additional advance to assist with ongoing business expenses. Columbia Gas will work with the business to make the claim process as easy as possible.
  • Common items used to assist in facilitating the prompt processing of a business owner’s claim that will be helpful in establishing the business loss include:
    • Name of owner(s), Identification (driver’s license, passport, etc.), name of business;
    • Business licenses;
    • 3 to 6 months of the most recent profit/loss statements;
    • Payroll records for the past 3 months;
    • Invoices evidencing any unusual or extra expenses incurred as a result of this incident;
    • Any expenses unique to your business that you attribute to the disruption of your gas service; and
    • Estimates or costs to repair any property damage.

Columbia Gas also withdraws its pending rate case

On September 19th, Columbia Gas also announced that it had officially withdrawn its pending rate case with the Massachusetts Department of Public Utilities. The company had originally filed its rate request in April 2018. In commenting on the decision, Columbia Gas of Massachusetts President Steve Bryant said,

Our team is fully committed to restoring the affected communities, rebuilding peace of mind and reestablishing trust in our company. This action is fully necessary at a time when we must maintain our focus on supporting our customers.”

The September 13th Merrimack Valley Gas Emergency affected three major communities in the Merrimack Valley, Andover, North Andover, and Lawrence. The Gas Emergency resulted in one death, dozens of injured and hundreds of insurance claims involving damaged homes and property.

In light of the incident, Columbia Gas also has promised to replace the entire 48-mile cast iron and bare steel natural gas system in the area. This system serves approximately 8,600 customers in the affected areas of the Merrimack Valley. According to the company, the upgraded system will feature new plastic lines with modern safety features, including pressure regulation and excess flow valves. It aims to have this upgrade along with service to all homes and workplaces restored by November 19th.

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