Source: Contra Costa Times (Walnut creek, CA), July 4, 2017
Posted on: http://www.advisen.com
The Valero oil refinery is seeking $75 million from PG&E in a federal lawsuit that blames the utility for a May 5 power outage that disrupted gasoline production for a month, damaged equipment, and showered tons of air pollution on downwind areas.
Some Benicia residents have criticized the oil refinery over pollution from hours of flaring that led to an industrial park being evacuated and an air quality agency issuing at least four violation notices against the oil company.
Valero, however, pointed the finger at PG&E, saying in a federal lawsuit that the utility abruptly pulled the plug on the refinery in a “reckless” 18 minute power failure.
PG&E cut off the flow on both of two transmission lines, one a regular power source for the refinery and the second a backup source designed to avoid shutdowns, according to the lawsuit filed Friday in U.S District court in Sacramento.
“PG&E must take responsibility for the damages it caused to ensure reckless power outages with potentially significant consequences never happen again,” Valero said in a statement.
PG&E apologized for the outage during a Benicia City Council meeting, and said it is taking measures to prevent power failures from happening again.
In response to the lawsuit, PG&E said it has commissioned an outside engineering firm, Exponent, to investigate the cause of the outage.
“We continue to partner with Valero and the city of Benicia to prevent similar power disruptions,” PG&E said. “The safety of our customers, employees and the general public is always our top priority.”
One of the transmission lines leading to Valero was taken off line on May 5 as part of planned maintenance, the utility said. For reasons being investigated, a breaker opened that morning, shutting down the backup line to Valero.
While the breaker opening is a safety measure to protect equipment, PG&E spokeswoman Deanna Contreras said the utility is trying to determine why it needed to open.
Valero said losing both transmission lines “simultaneously without any prior notice” put plant workers and neighbors at risk.
“PG&E knew or should have known that unplanned power dips or outages can present serious safety issues to refinery employees and members of the community, including the risk of explosions, fires, and serious injury,” attorneys for the oil company wrote in the lawsuit.
Valero said the outage damaged refinery equipment, and caused the refinery to lose money because it couldn’t produce gasoline and other fuels for about the month it took to make repairs and bring the refinery back into production.
Valero also said it deserves damages because its reputation was harmed.