NEWPORT — Cinergy customers who must replace water-damaged gas appliances may learn today whether they'll get help from the city's insurance carriers.

        Newport officials said they expect to hear from the companies that insure the city about how such claims will be handled.

        “We are working through our insurance carriers to resolve the appliance issue,” Newport City Manager Phil Ciafardini said Tuesday.

Cinergy worker Robert Winterman pours water from a gas meter he removed from a home on Ann Street in Newport. (Patrick Reddy photo) | ZOOM |

        “We're looking at finding help to pay at least a portion of the costs.... There will probably be an 800 number that people can call.”

        A total of 3,700 Cinergy customers in Newport were left without natural gas service since Thursday, when Newport gas lines were flooded after a water main break. By late Tuesday night, 2,400 homes had had gas service restored.

        For the remaining 1,300, about 700 should get gas service by tonight , said Cinergy spokesman Steve Brash.

        But the 600 others have sustained water damage and are facing repairs or replacement of appliances. Cinergy is coordinating the efforts of 100 licensed heating and cooling contractors to visit these homes over the next couple of days, make basic repairs and restore service.

        So far, 325 homes are scheduled for such visits; 475 homes are on a waiting list. It is unclear how long that wait will be.

        To speed the process, Cinergy is providing the replacement control valves many of the damaged appliances require and will seek reimbursement later.

        “We will seek reimbursement through homeowners' (insurance) policies and whatever responsible parties that will be discovered in the future,” Mr. Brash said.

        But for appliances that need more work, or outright replacement, “that's not really something within our control,” Mr. Brash said.

        By Monday, a few home owners and renters had contacted the Brighton Center, a major social service agency, seeking financial help to replace water-damaged appliances.

        “If they're renters, we're recommending that they call their landlords to see if they have an insurance policy that covers it,” said Melissa Hall, program director of Brighton Center's family center.

        Homeowners who do have insurance will need to check with their insurer, because coverage varies from plan to plan.

        “The determination is going to be whether the appliances are considered part of the dwelling or ... personal property,” said Jesse Shipp, of Jesse Shipp & Associates, a Nationwide representative.

        “Our company does consider the appliances part of the structure, so they're covered. But that's not the case with every carrier.”

        Phil Rollins of State Farm Insurance said he has gotten only one query on the Newport situation but has not yet handled a claim.

        “Normally, home owners insurance policies do not cover replacement of appliances,” Mr. Rollins said.

        “In a situation like this, it's not something that's clearly defined, so we have to take a look at whether it's covered. This could be some unexplored territory.”

        Another unanswered question is who, ultimately, will bear the bulk of the legal liability and related expenses for the gas outage.

        Cinergy officials said last week that much of the gas distribution system was flooded in Newport when a city-owned water line burst, creating a three-inch hole in a gas line just inches away.

        But city officials have maintained that the cause of the gas outage is undetermined.

        “The only thing we know is that water from our line got into their gas system,” Mr. Ciafardini said.“ Liability has not been determined. It may have been a freak occurrence.”

        He said the insurance companies and all parties involved will have experts examine Newport's water line and Cinergy's gas line.

        “They'll be asking questions like, "What do the pipes tell us?”' Mr. Ciafardini said.

        “What do we think really occurred? Is there a party that's solely responsible, or is there a shared responsibility?”

        The city also is working with Cinergy to compile a list of properties that suffered water damage, and he expects to give a partial list to the city's insurance carriers today or Thursday.

        Neither the city nor the utility could provide a figure on the potential costs incurred from the outage, repairs, cleanup and labor and supply costs.

        A Cinergy executive had predicted the cost to the utility last week as “in the hundreds of thousands of dollars.” Mr. Brash said that he could not give a reliable figure Tuesday.

        Both Cinergy and Newport officials said the restoration of gas service must be complete before they worry about how to pay for it all.

        “From the very beginning, Cinergy and the city of Newport have said, "Hey, let's take care of the citizens first, and figure out how to pay for it later,”' Mr. Ciafardini said.
       
       

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