Pre-explosion Insurance Claims for Power Plant Denied

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Pre-explosion Insurance Claims for Power Plant Denied | F.E. Moran Special Hazard Systems

Guam Power Authority's insurance claims for $4.6 million to repair the generator rotor shaft were denied following an explosion that resulted from those needed repairs.

Cabras 3 power plant's generator rotor shaft had cracks that were discovered in October 2013.  Then, in January 2014, GPA got the go ahead to spend $4.6 million on the repairs using ratepayers money, with the idea of paying it back with the insurance claim.  However, their insurance claim was denied. 

The reason for the denial is that the insurance company is claiming that the damage happened over time and not because of any one incident.  "Experts noted the cracks are a gradual wear and tear issue; routinely dealt with during preventative maintenance," the GPA report states.

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