"While Roger and Steve pass by the power plant, they accidentally knocks out the power..."
remove "s" from "knocks."
The order of events with Steve is wrong.
Francine decides to throw a block party to get in touch with the neighborhood. Stan learns his new neighbors are Iranian and immediately suspects that they are terrorists. To instill American values into Steve, he forces him to join some scouts who hide a more sinister agenda and threaten him if he tries to quit. While Roger and Steve pass by the power plant, they accidentally knocks out the power, causing Stan to blame the Memaris. He turns his house into a detention camp and keeps them inside.
When the other neighbors complain, Stan puts all of them in the detention camp as well. As a result of the scouts initiation of Steve, he accidentally sets a park gazebo on fire and they feel that he has gone too far by even their standards and leave him be. Francine manages to convince the neighborhood that the whole thing is just a block party with a "terrorist detention camp" theme. When Stan spots the smoke and knows he has already imprisoned all of the neighbors, he believes he has been hypnotized as an enemy sleeper agent and subjects himself to beating and torture to find out his own agenda as Francine's prison camp theme block party is a success.