5.4 ERMUSR 03-13-2017 Elk River
Municipal Utilities UTILITIES COMMISSION MEETING
TO: FROM:
Elk River Municipal Utilities Commission Troy Adams, P.E.—General Manager
John Dietz—Chair
Daryl Thompson—Vice Chair
Al Nadeau—Trustee
MEETING DATE: AGENDA ITEM NUMBER:
March 13, 2017 5.4
SUBJECT:
Bids for 69kV Substation Transformer
BACKGROUND:
Approved with the 2017 budget was the addition of a new electric substation. This new
substation will be located adjacent to our existing Waco Substation on the NW corner of County
Road 35 and Zebulon Street NW. This substation will service load growth on the western side of
Elk River which includes:
• Electric service territory acquisition areas 3, 4, 5, 6, and 7. These acquisition areas
comprise less than 50% of the load and customers associated with the 2015 electric
service territory transfer agreement executed with Connexus Energy;
• The Sherburne County Government Center expansion;
• Capacity for potential future data center located adjacent to the Sherburne County
Government Center;
• Future emergency interconnection with the ERMU Otsego Substation.
DISCUSSION:
One of the larger components of the substation addition is the transformer. This transformer
steps down the 69kV transmission system to ERMU's distribution voltage of 12.47kV. The cost
of this transformer exceeds the threshold amount and is subject to competitive bidding law. The
bid opening was March 6 and the bid tabulation is attached.All bids were within the expected
range and approximately$250 less than peak quotes for the same transformer specification in
2007.
The quotes and equipment specifications were reviewed by our substation engineering
contractors at Great River Energy(GRE). The two lowest responsive bidders are effectively at
the same price. However, there is a significant difference in delivery time. Because of this
difference in delivery time and the indirect costs and system load operational coordination
considerations associated with extending the construction schedule,the GRE engineers have
recommended choosing the Waukesha transformer. Currently in the ERMU distribution system,
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four out of seven of our 69kV/20.47kV substation transformers are Waukesha transformers. The
similarity in equipment of our substations is a value and safety adder.
Also included in all of the quotes was the option to have a short circuit test conducted. The GRE
engineers have recommend that we not conduct the test as the costs greatly exceed the value.
ACTION REQUESTED:
Staff recommends the Commission award the bid for the 69kV substation transformer per the bid
package specifications to MC Sales for the Waukesha transformer with a 22-26 week delivery
window for the amount$543,883.
ATTACHMENTS:
• 69kV Substation Transformer Bid Tabulation
• Bid and Specification Analysis and Recommendation Letter
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Adams, Troy
From: Newton,Jared GRE-MG <jnewton@GREnergy.com>
Sent: Tuesday, March 07, 2017 11:21 AM
To: Adams,Troy
Cc: Fournier, Geralyn; O'Neill, Mike GRE-MG
Subject: RE:Transformer bids
Troy,
After comparing the bids,the cost and warranty for the SPX Waukesha unit and the Delta Star unit are effectively the
same. However the Delta Star unit has an additional 20 weeks delivery time. I think the SPX Waukesha unit is the best
choice.
I reviewed the SPX Waukesha bid,and it appears to be complete. It includes setting the transformer on the pad and
field dressing the transformer. As we talked about yesterday,Waukesha will cover a crane to set the transformer on the
pad. If the offload process becomes more involved,the additional cost will be on ERMU. This will be the same with all
vendors.
Let me know if you need additional review.
Thanks,
Jared Newton
From: Fournier, Geralyn [mailto:GFournier@elkriverutilities.com]
Sent: Monday, March 06, 2017 11:43 AM
To: Newton,Jared GRE-MG <jnewton@GREnergy.com>
Cc:Adams,Troy COOP-ERMU <tadams@elkriverutilities.com>
Subject:Transformer bids
EXTERNAL
Jared,
Troy asked that I scan these bids over to you for further review.
Thanks,
Geri Fournier I Purchasing Specialist
763.441.2020 w 1763.635.1324 d 1763.441.8099 f
13069 Orono Parkway, P.O. Box 430 1 Elk River I MN 155330-0430
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