The state Public Service Commission voted Thursday to direct the utility company to put aside the money. It has not yet decided how the money will be used.
Last year, a natural gas explosion destroyed a house and killed 40-year-old Ghanwatti Boodram, a nurse and mother of three. Con Edison workers had been on the block earlier, responding to reports of gas odors.
The state's Department of Public Service determined Con Edison had violated its procedure to respond to gas leaks.
In a statement, Con Edison said it expects the agreement will fund a variety of new equipment and public safety improvements.