02-05-10 BPU RPT 12 - Laserfiche WebLink

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W A T E R I E N E R 5 Y , L I F E RIVERSIDE PUBLIC UTILITIES Board Memorandum P U B L I C U T I L I T I E S BOARD OF PUBLIC UTILITIES DATE: February 5, 2010 ITEM NO: 12 SUBJECT: RIVERSIDE ENERGY RESOURCE CENTER UNITS 1 AND 2 TURBINE REPAIRS — ADDITIONAL FUNDING ISSUE: Board approval is requested to approve additional funding in an amount not-to-exceed $154,000 related to the repair of RERC Units 1 and 2. RECOMMENDATION: That the Board of Public Utilities approve additional funding of up to$154,000 for repairs to the RERC Unit 1 and 2 turbines. BACKGROUND: At its meeting on December 18, 2009, the Board of Public Utilities approved a service proposal by TransCanada Turbines ("TCT") for repairs to the RERC Units 1 and 2 turbines. These repairs were recommended by the turbine manufacturer and necessary to ensure that both units are available for peaking requirements during the summer of 2010.The TCT service proposal estimated the cost of the recommended repairs at $300,000 per unit. Recognizing that complete disassembly of the turbines would expose mechanical components that are typically inaccessible, the Board approved up to $100,000 in additional funds for each turbine in the event that emergent issues required unanticipated repairs. During the course of Unit 1 turbine repairs, inspections revealed that additional components would require repairs for the unit to be operable upon its reinstallation at the RERC site. Those repairs are being affected, with an estimated additional cost of $154,000. These costs represent a $54,000 increase beyond the $100,000 amount previously authorized by the Board for emergent work on each turbine, and are identified below: ITEM COST COMMENTS Inlet Gearbox Shaft $47,310 Tooth wear beyond s ecifications VBV Door Bushings 1,800 Bushings worn Service Bulletin 249 3,000 Replace lock nuts Spanner Nut#4 Bearing 1,216 Replace worn nut Bearing 2R 6,733 Bearing worn below specifications Bearing 3R 17,724 Bearing worn below specifications Bearing 4B 15,446 Bearing worn below specifications Bearing 5R 23,848 Bearing worn below specifications Bearing 4R 11,641 Bearing worn below specifications Miscellaneous Reassembly 25,000 (Anticipated Cost) Total $153,718