AGAWAM, MA – Power Plant Management Services, LLC (PPMS), along with its former client, Berkshire Power Company (BPC), have been sentenced following a years-long investigation into systematic tampering with air pollution controls and falsification of emissions data at the Berkshire Power Plant in Agawam, Massachusetts. The scheme, carried out between 2009 and 2011, was designed to maximize profits by circumventing environmental regulations and misleading energy grid operators.
Federal prosecutors detailed how PPMS, acting as the plant manager for BPC, directed staff to manipulate the plant’s Continuous Emissions Monitoring System (CEMS). The CEMS, designed to accurately measure pollutants released into the atmosphere, was intentionally biased to report lower emission levels than were actually being produced. This false data was then submitted to both the U.S. Environmental Protection Agency (EPA) and the Massachusetts Department of Environmental Protection (MassDEP), effectively concealing violations of the Clean Air Act.
The motivation behind the deception, according to court documents, was financial. By underreporting emissions, BPC and PPMS avoided potential revenue losses that would have resulted from either reducing power production to comply with emission limits or taking the plant offline for necessary repairs to its pollution control equipment. Simultaneously, PPMS falsely informed ISO-New England, the regional power grid administrator, that the plant was operating at full capacity even when it wasn’t, further bolstering revenue streams.
This isn’t simply an environmental violation; it’s a calculated attempt to defraud regulators and the public,” stated Tyler Amon, Special Agent in Charge of the EPA’s Criminal Investigation Division. “The manipulation of emissions data put the health of Massachusetts residents at risk and undermined the integrity of the Clean Air Act.” The excess nitrogen oxide (NOx) emissions, a byproduct of the plant’s operation, contribute to ground-level ozone formation, exacerbating respiratory problems and posing a threat to vulnerable populations.
Penalties and Restitution
U.S. District Court Judge Mark G. Mastrioanni handed down the sentences on March 23, 2017. BPC was ordered to pay $2.75 million in criminal fines and an additional $750,000 community service payment to the American Lung Association for a wood stove replacement program in western Massachusetts. PPMS received a $500,000 criminal fine and a $250,000 community service payment to the same program. Beyond the criminal penalties, both companies agreed to pay $3,042,563 plus interest to the Federal Energy Regulatory Commission as civil penalties and disgorgement for their false statements to ISO-New England.
Individual employees were also held accountable. Former plant employee, Baker, received 30 months probation and a $5,000 fine after pleading guilty in May 2016. Scott Paterson, another employee, was sentenced to 12 months probation and a $1,300 assessment after his guilty plea in February 2015. The case was a joint effort by federal and state authorities, including the Massachusetts Environmental Crimes Strike Force and the Massachusetts Environmental Police.
Key Facts
- Defendant: Power Plant Management Services, LLC (PPMS) and Berkshire Power Company (BPC)
- Location: Agawam, Massachusetts
- Years Active: 2009 – 2011
- Crime: Tampering with air pollution monitoring equipment and false reporting to environmental and energy regulators.
- Statutes Violated: Title 18 U.S. Criminal Code, Clean Air Act (42 U.S.C. 7413(c)(2)(C), 16 U.S.C. 824v, 42 U.S.C. 7413(c)(2)(C), 18 U.S.C. 371, 42 U.S.C. 7413(c)(2)(A), 16 U.S.C. 825o), and Federal Power Act.
- Penalties: Over $7 million in combined fines, restitution, and community service payments. Individual employees also received probation and fines.
- Impact: Increased air pollution, health risks to the public, and undermined the integrity of environmental regulations.
Assistant U.S. Attorney Sara Miron Bloom and USEPA Criminal Enforcement Counsel Dianne Chabot led the prosecution. The case serves as a stark reminder that environmental crimes carry significant consequences, and that companies will be held accountable for prioritizing profit over public health and environmental protection.
Source: EPA ECHO Enforcement Case Database
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