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Elk River <br /> Municipal Utilities UTILITIES COMMISSION MEETING <br /> TO: FROM: <br /> Elk River Municipal Utilities Commission Troy Adams, P.E.—General Manager <br /> John Dietz—Chair <br /> Daryl Thompson—Vice Chair <br /> Al Nadeau—Trustee <br /> MEETING DATE: AGENDA ITEM NUMBER: <br /> March 13, 2017 5.4 <br /> SUBJECT: <br /> Bids for 69kV Substation Transformer <br /> BACKGROUND: <br /> Approved with the 2017 budget was the addition of a new electric substation. This new <br /> substation will be located adjacent to our existing Waco Substation on the NW corner of County <br /> Road 35 and Zebulon Street NW. This substation will service load growth on the western side of <br /> Elk River which includes: <br /> • Electric service territory acquisition areas 3, 4, 5, 6, and 7. These acquisition areas <br /> comprise less than 50% of the load and customers associated with the 2015 electric <br /> service territory transfer agreement executed with Connexus Energy; <br /> • The Sherburne County Government Center expansion; <br /> • Capacity for potential future data center located adjacent to the Sherburne County <br /> Government Center; <br /> • Future emergency interconnection with the ERMU Otsego Substation. <br /> DISCUSSION: <br /> One of the larger components of the substation addition is the transformer. This transformer <br /> steps down the 69kV transmission system to ERMU's distribution voltage of 12.47kV. The cost <br /> of this transformer exceeds the threshold amount and is subject to competitive bidding law. The <br /> bid opening was March 6 and the bid tabulation is attached.All bids were within the expected <br /> range and approximately$250 less than peak quotes for the same transformer specification in <br /> 2007. <br /> The quotes and equipment specifications were reviewed by our substation engineering <br /> contractors at Great River Energy(GRE). The two lowest responsive bidders are effectively at <br /> the same price. However, there is a significant difference in delivery time. Because of this <br /> difference in delivery time and the indirect costs and system load operational coordination <br /> considerations associated with extending the construction schedule,the GRE engineers have <br /> recommended choosing the Waukesha transformer. Currently in the ERMU distribution system, <br /> riwEIEI ® / <br /> Ei <br /> Page l of 2 <br /> ATURE <br /> Reliable PiblicW <br /> Power Provider POWERED T O SERVE <br /> 107 <br />