Michigan Utility Agrees to Create $1M Explosion Fund

One of Michigan’s largest utilities has agreed to pay $1 million to create a new response fund after a natural gas line exploded, killing a Royal Oak man.

Attorney General Bill Schuette said Consumers Energy will spend $900,000 to help victims affected by natural gas disasters with shelter, food and clothing. Another $100,000 will help study best safety practices and train utilities and first responders.

The agreement with Schuette’s office is separate from an ongoing investigation by state regulators into the February explosion that killed Daniel Malczynski and damaged 30 homes.

Schuette says victims helped by the Natural Gas Incident Response Fund won’t waive their right to sue the unit of Jackson-based CMS Energy Corp.

Consumers fired employees involved in digging a new gas line near Malczynski’s house.