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.
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,” said Cashen.
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.
Update | April 6, 5:30 p.m.
In an emailed response, Universal Energy called the state’s initial report of the event “dramatically overstated,” adding “safety is a priority in all our project work.” The company claimed it reached a settlement with the state, “with a significant reduction in citations.” The state was not yet able to confirm a settlement was reached.
