Berkshire Power Fined $2.75M for Pollution Fraud

BOSTON – The Berkshire Power Company (BPC) and Power Plant Management Services, Inc. (PPMS) were handed down severe penalties yesterday in U.S. District Court for tampering with air pollution emissions equipment at the Berkshire Power Plant in Agawam, Mass.

United States District Judge Mark G. Mastrioanni sentenced BPC to pay $2.75 million in criminal fines for Clean Air Act violations and an additional $750,000 community service payment to the American Lung Association for wood stove replacement programs. PPMS was ordered to fork over $500,000 in criminal fines for their role in the deception.

The pair also agreed to pay a total of $3,042,563 plus interest to the Federal Energy Regulatory Commission (FERC) as civil penalties and disgorgement for misrepresenting the Plant’s power availability to ISO-New England.

In May 2016, BPC and PPMS pleaded guilty to felony charges, including conspiracy to violate the Clean Air Act. They tampered with air pollution monitoring equipment from 2009 to 2011, showing false emissions levels to avoid losses due to reduced power production or plant shutdowns for repairs.

PPMS also pleaded guilty to violating the Federal Power Act, marking the first criminal charges under this statute. They made false statements to ISO-New England about the Plant’s power availability, a move that threatened the New England grid’s reliability.

Documents revealed that BPC engaged PPMS to manage plant operations and maintenance, including the tampering of emissions monitoring systems. This deliberate manipulation aimed to hide excess emissions of nitrogen oxide (NOx), which combines with other pollutants to form ground-level ozone, a health hazard for vulnerable populations and an environmental menace.