11-06-2015 BPU RPT 07 - Laserfiche WebLink

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W A T E R E N E R C Y I WI& P U B L I C U T I L I T I E S BOARD OF PUBLIC UTILITIES RIVERSIDE PUBLIC UTILITIES Board Memorandum DATE: NOVEMBER 6, 2015 ITEM NO: 7 File ID — 15 -3579 — C SUBJECT: LOAD TAP CHANGER REPLACEMENT, SUBSTATION TRANSFORMER TESTING AND INSTRUMENTATION UPGRADE PROJECT INCLUDING A PROFESSIONAL SERVICES AGREEMENT FOR REQUEST FOR PROPOSAL 1534 - WORK ORDER NO. 1511213 - FOR $3,200,000 ISSUES: The issues for Board of Public Utilities consideration are: 1) approve Work Order No. 1511213; and 2) approve a Professional Consulting Services Agreement with Reinhausen Manufacturing for a Load Tap Changer (LTC) replacement, substation transformer testing, and instrumentation upgrade project. RECOMMENDATIONS: That the Board of Public Utilities: Approve Work Order No. 1511213 in the amount of $3,200,000; and 2. Approve a Professional Services Agreement with Reinhausen Manufacturing Inc. located in Humboldt, Tennessee, for the LTC Replacement Project in the amount of $2,914,678. BACKGROUND: On September 4, 2015, the Board of Public Utilities (Board) received a report of planned routine infrastructure projects. The purpose of that report was to provide the Board an overview of the routine infrastructure projects, over $500,000, planned for FY 2015/16, and to highlight the importance of those projects. Discussion of these projects provided context and familiarity to streamline Board approval of individual project actions throughout the fiscal year. One of the projects discussed was the planned replacement of nine substation transformer Load Tap Changers (LTC) at seven substations for $3,200,000. Such replacements and upgrades benefit a large number of customers (approximately 22,000 residents per substation) and also introduce new technology to improve reliability and reduce prolonged outages. The LTC is an essential component of a substation transformer that regulates voltage in the electrical system. Riverside Public Utilities (RPU) is experiencing recurring issues with Allis- Chalmers model #TLH -21 LTCs. These devices are 25 -30 years old, are the only moving parts in a transformer, and now require frequent repairs and expensive parts replacement. RPU operates nine of these particular LTCs as indicated in the table below.