HomeMy WebLinkAbout9 Purchasing Transormers for Truckee Substationenda Item #
ACT 1 O N
To: Board of Directors
From: Joe Horvath
Date: March 01, 2017
Subject: Consideration of Purchasing Transformers for Truckee Substation
1. WHY THIS MATTER IS BEFORE THE BOARD
Board approval is required for procurements in excess of $15,000.
2. HISTORY
During the recent severe winter storms, the "B" phase transformers at
Truckee substation each experienced a "sudden pressure" event that tripped the
entire substation off-line. A sudden pressure event is indicative of an internal fault
within the transformer. A subsequent field investigation revealed no signs of
malfunction or injury by external means such as animals or falling trees. Oil samples
from the transformers displayed the presence of acetylene gas, an indicator of internal
arcing due to a short circuit condition within the transformer. This is clear indication of
transformer winding damage or imminent winding failure. These units requires
refurbishment or replacement.
3. NEW INFORMATION
The Truckee Substation transformers were all manufactured by the R.E. Uptegraff
company of SCottdale, Pennsylvania. For interoperaty and compatibility reasons, it
is important that the replacement transformers continue to be from R.E Uptegraff
whether as rebuilt or new units. This would greatly facilitate and ensure the seamless
future integration of these units into the working lineup.
The cost to rebuild one failed transformer is approximately $95,000. The cost to
purchase a brand new transformer is about $1207000. Since the price differential
between refurbishment and replacement is relatively minor, it is to the District's
advantage to purchase two new transformers. The District purchased and installed an
new transformer from R.E Uptegraff for use at Truckee Substation in 2016 due to a
equipment failure that occured in 2015. The proposed purchase of 2 transformers
from R.E Uptegraff would result in new units for all 3 phases at Truckee Substaion,
extending the service life of the substation transformers for an additional 20 to 30
years. A spare transformer is currently in place at Truckee Substation,
4. FISCAL IMPACT
The transformer purchase will be funded from the Electric Capital Reserve Fund.
5. RECOMMENDATION
1. Make findings that there is an urgent and immediate need to replace two
transformers damaged in the recent storms and that the time required to follow
a competitive bidding process would not produce an advantage to the District
because it would take too long to obtain and place in service the two
transformers without risking the District's ability to provide reliable electric
service to its customers; and
2. Dispense with compeve bidding for the purchase of two transformers and
authorize the General Manger to execute a contract or purchase order for the
transformers from R.E. Uptegraff Manufacturing Co., in the amount of
$240,000, plus a 10 percent change order allowance in the amount of $24,000
for an amount not to exceed $264,000 plus tax and shipping.
Stephen Hollabaugh
Assistant General Manager
f-_-
Michael D. Holley
General Manager