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RIVERSIDE PUBLIC UTILITIES <br /> Board Memorandum <br />BOARD OF PUBLIC UTILITIESDATE: JANUARY22, 2018 <br />ITEM NO: 7 <br />SUBJECT:AWARD RFP-801 FOR FURNISHING AND DELIVERING TWELVE 6000KVAR METAL <br />ENCLOSED CAPACITOR BANKS TO NORTHEAST POWER SYSTEMS, INC OF <br />QUEENSBURY, NEW YORK,IN THE AMOUNT OF $2,562,558–APPROVE WORK <br />ORDER NO. 1814007FOR SUBSTATION CAPACITOR UPGRADE PROJECT FOR <br />$5,306,000 <br />ISSUES: <br />Award RFP-801 for furnishing and delivering twelve 6000kVAR metal enclosed capacitor banks to <br />Northeast Power Systems, Inc.of Queensbury, New York,in the amount of $2,562,558,and approve the <br />capital expenditure of $5,306,000 for the Work Order No. 1814007. <br />RECOMMENDATIONS: <br />That the Board of Public Utilities: <br />1.Award RFP-801 for furnishing and delivering twelve 6000kVAR metal enclosed capacitor banks <br />tothe lowest responsive and responsible bidder Northeast Power Systemsof Queensbury, New <br />York, in the amount of $2,562,558;and <br />2.Approve Work Order No. 1814007forthe Substation Capacitor Upgrade Projectin the amount of <br />$5,306,000. <br />BACKGROUND: <br />Substation capacitor banks (capacitors) arecritical componentsfor the reliability of the electrical power <br />system. Capacitorsare operated to support system voltageand provide reactive power to RPU’s <br />electrical powersystem.Reactive power must be supplied to most types of electricequipment, such as <br />motors and transformers. Capacitorsalso contribute to the efficiency of the electrical power system by <br />reducingsystem losses, improvingsystem capacity,and ensuringthat customers receive power at the <br />proper voltage. In addition, capacitors maintain the proper power factor at the interface with Southern <br />California Edison (SCE) at SCE’s Vista Substation. The proper power factor at SCE’s Vista Substation is <br />identified in the Interconnection Facility Agreement between SCE and the City of Riverside. <br />Many of the capacitors installed in RPU’s systemhaveexceeded or are reaching the end of their design <br />life. Also, some of these capacitors have limited power regulating capabilities. Operating equipment <br />beyondits design life represents anundesirable safety concern to RPU field staff and residents, anda <br />preventable reliability issue to RPU’s electrical system. Last year, RPU experienced a failure of a <br />capacitor bank at Harvey Lynn substation due to its physically openand exposedconfiguration,which <br />madeit susceptible to the elements and animals. <br />Page 34 <br />