Settlement in East Bay power plant explosion is largest in the history of state energy commission
The city of Hayward will receive $1.25 million to fund clean energy projects as part of a $2.5 million settlement over an explosion at the Russell City Energy Company power plant two years ago.
The settlement agreement comes just after the anniversary of an explosion that blasted dozens of pieces of metal up to a quarter-mile into the surrounding community on May 27, 2021. According to Hayward City Manager Kelly McAdoo, one 10-pound chunk of metal plummeted through the roof of the kitchen at a city homeless services center.
“No one was in there because it was close to midnight, but if it fell into the sleeping quarters, someone probably would have died,” McAdoo said.
Other pieces of metal ended up in the city’s wastewater treatment ponds and surrounding streets. The power plant, which has been in operation since 2013, was shut down for several months during a critical, energy-intensive period of the summer following the accident.
The explosion quickly prompted an investigation by the California Energy Commission (CEC), which oversees power plant licensing, to determine the cause of the failure and ensure it won’t happen again.
It was ultimately determined that a malfunction in the steam turbine generator led to the explosion and subsequent fire. The investigation also detailed a number of safety failures, including maintenance of critical equipment and poor protection from water induction.
“Safety and reliability, we can’t compromise on either of those,” said CEC Commissioner Andrew McAllister.
Although the plant is not required to admit fault as part of the settlement, CEC commissioners acknowledged that the explosion could have easily resulted in “injury and death.” The report on the investigation also details specific failures on behalf of the plant.
The settlement is the largest in the history of the CEC. With half of it slated for Hayward, the other $1.25 million will go into the CEC’s general fund.
The commission could have chosen to shut down the power plant entirely. According to McAdoo, the power plant’s importance for energy stability was likely part of the calculus in fining the company, rather than revoking its license.
McAdoo said the city is comfortable with the plant continuing to operate in Hayward.
“There was a lot of concern about what could have happened,” McAdoo said. “They responded accordingly and did their due diligence that these issues were cleaned up.”
As part of the settlement, Russell City Energy Company–a subsidiary of one of the largest electric services companies in the country, Calpine Corporation–was required to put safeguards into place that will prevent a similar explosion from happening again.
The energy commission also mandated that Calpine work with the city and the fire department to ensure that there is better communication between management at the plant and the fire department, as well as requiring additional training and preparation exercises.
As a result of conversations with Hayward, the CEC also made changes to statewide procedures, ensuring that any audits related to a power plant will also be sent to the community it operates in.
The $1.25 million will be brought to Hayward City Council sometime in the next few weeks for acceptance. McAdoo said it will be used on clean projects that reduce energy reliance on power plants like Russell City Energy Company, such as installing solar panels on city facilities or developing alternative energy sources.
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