Crews were called to the 1400 block of Point Breeze Avenue around 6:15 a.m. Saturday because of elevated levels of carbon monoxide.
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They arrived to find several small fires from an electric service line that caught fire.
VIDEO: Crews battle underground fire in Point Breeze
So far, there are no evacuations or injuries.
One customer lost power and PECO is working to restore their service.
Officials are trying to determine why the line caught on fire.