Southwest Gas will have to pay a $2 million fine and install thousands of miles of new piping for failing to take proper steps to prevent two pipe incidents in the East Valley in 2021, one of which resulted in an explosion.

The Arizona Corporation Commission, the state’s utility oversight panel, unanimously approved on Wednesday the penalty agreement between Southwest Gas and the commission’s Office of Pipeline Safety.

Investigators said Southwest Gas bought specific types of piping, known as Driscopipe polyethylene (PE) M7000 and M8000, that degraded in high-heat areas, which led to dangerous leaks.

The company also didn’t properly map where these failing pipes are and increase leak patrols in those areas.

On Aug. 26, 2021, just before 9:30 a.m., a gas leak caused an explosion at a print shop in a strip mall near Rural and Ray Roads.

Four people were badly hurt.

On Sept. 9, 2021, about a dozen homes in northeast Scottsdale were evacuated due to an underground gas leak. No injuries were reported.

Southwest Gas also agreed to replace or remove roughly 10,000 miles of defective piping in Arizona. The company also must tell the Office of Pipeline Safety of any leaks discovered.

Southwest Gas said it’ll increase leak patrols by six times per year in its network.

The Arizona Corporation Commission also approved an amendment stating that the settlement doesn’t mean Southwest Gas can increase customer rates.

“This matter has been before the Commission long enough and the approval of this settlement is a big step in the direction of maintaining public safety and holding the utility accountable,” said Commissioner Kevin Thompson. “I don’t believe customers should bear the entire responsibility for the mistakes of the manufacturer and their defective products, and I wish the utility would have pursued this path more aggressively when they had the chance.”