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Commission approves Lake State Construction contracts for First Avenue and Ansley substations
Summary
Commission authorized Lake State Construction LLC to perform feeder-exit excavation and cable work at two substation project sites; work is budgeted in 2024 though cash will be spent in 2025.
Hibbing Public Utilities commissioners approved two contracts with Lake State Construction LLC on Jan. 21 to complete feeder-exit excavation and cable work at the First Avenue and Ansley substation project sites.
Staff told the commission both projects were budgeted in 2024 but, because the utility's budget follows a calendar year and cash will be spent when work occurs, the expenses will be charged in 2025. "These were both budgeted in 2024, and this is for the area outside of the fence of the substation for the feeder entrances and exits," Mr. Peterson said. He added the transformer for one of the projects is expected to arrive in February.
The commission approved a contract for First Avenue work not to exceed $150,000 (motion by Commissioner Stokes, support by Commissioner Bayless) and a contract for the Ansley site for $74,533.02 (motion by Commissioner Stokes, support by Commissioner Bayless). Both motions carried by voice vote.
Peterson said Lake State is already working at the sites and continuing them reduces mobilization and coordination costs. Commissioners asked whether the contract costs would be charged to 2025 cash flow; staff confirmed the fiscal charge will align with when cash is spent while remaining part of the overall 2024 capital authorization.
Work at both sites covers feeder entrances and exits outside the substation fence and is intended to prepare the facilities for upcoming equipment deliveries and energizing.
