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ND PSC approves $10,000 penalty (half suspended) for North Central Service in water-line strike case after split vote
Summary
The commission adopted a consent agreement assessing North Central Service Inc. a $10,000 civil penalty — $5,000 suspended — for failing to timely report a strike of an underground water line that caused service outages to 66 customers. The vote drew a dissent over penalty size.
The North Dakota Public Service Commission adopted a consent agreement finding that North Central Service Inc. failed to timely report damaging an underground Cass Rural water main and assessed a $10,000 civil penalty with $5,000 suspended on the condition of no further violations within five years.
Commission records show that on July 10 (filed July 11), North Central was conducting horizontal boring in Cass County and struck a Cass Rural water pipe, causing outages to 66 customers. The consent agreement states North Central did not notify the operator as required under the North Dakota Century Code when the damage occurred. The company must remit $5,000 within 10 business days; the remaining $5,000 is suspended if there are no further violations for five years.
The item prompted extended discussion on the appropriate penalty amount. Chairman Randy Christman expressed concern that the amount was high given evidence about circumstances and past interactions, and he said he favored a lower penalty or returning the matter to staff to renegotiate. Christman noted the commission’s civil-penalty cap is $25,000 and said penalties historically ranged to address severe harms.
Commissioner Haugenhofer defended the consent agreement and the penalty, citing the importance of reporting strikes so damage can be promptly repaired and public safety protected. Haugenhofer also noted the consent agreement included negotiated terms and that the commission’s enforcement history with the parties showed a pattern of incidents and filings between the companies.
The vote was taken by roll call: Chairman Randy Christman voted nay; Commissioner Haugenhofer voted aye; Commissioner Craigstead voted aye. The motion passed 2–1. The matter is recorded as case DM-24-293.
Commission discussion also covered whether the consent agreement contained an explicit admission of responsibility; commissioners noted the agreement acknowledges the strike but includes language denying knowing failure to report, which some said raised accountability concerns.
