Huge fine issued for dangerous incident at Anchorage power plant

A sign points to ML&P’s newest power facility in East Anchorage. (Photo by Elizabeth Harball/Alaska’s Energy Desk.)

The state is fining three companies a combined $882,000 for violations that led to a dangerous incident last September at a power plant in East Anchorage.

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The companies were involved with construction of Municipal Light & Power’s Plant 2A, which started operating last year.

Greg Cashen, deputy commissioner for the Alaska Department of Labor and Workforce Development said it’s one of the biggest fines he’s ever seen:

“$882,000, yeah, that’s not an everyday occurrence,” Cashe saidn.

The state reported that on Sept. 17, 2016, the plant’s steam piping system experienced violent shaking and high pressures after a contractor removed a pressure release valve.

Municipal Light & Power asked the contractors to shut the system down, according to the state. But the operators — working for the Houston-based company Universal Energy — delayed taking action. As a result, Municipal Light & Power evacuated their employees. The pressure relief valve wasn’t reinstalled for almost a week, Cashen said.

Universal Energy is being fined $182,000 for the incident. The state also fined companies Price Gregory International and Quanta Power Generation, both also based in Houston, a combined $700,000.

Because they evacuated the site safely, the state says Municipal Light & Power is not being fined.

Cashen said the investigation is ongoing, and that the companies can contest the fines.

Elizabeth Harball is a reporter with Alaska's Energy Desk, covering Alaska’s oil and gas industry and environmental policy. She is a contributor to the Energy Desk’s Midnight Oil podcast series. Before moving to Alaska in 2016, Harball worked at E&E News in Washington, D.C., where she covered federal and state climate change policy. Originally from Kalispell, Montana, Harball is a graduate of Columbia University Graduate School of Journalism.

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