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Logan Light & Power seeks $4 million from reserves to replace two 40‑year transformers; five‑year lead time warned
Summary
Mark, speaking for Light & Power, told the Logan City Council budget workshop that the utility needs $4,000,000 from reserves to replace two aging transformers at Substation 1 and that the units take about five years to manufacture.
Mark, speaking for Light & Power, told the Logan City Council budget workshop that the utility needs $4,000,000 from reserves to replace aged equipment at Substation 1, and that the units take about five years to build.
“We need $4,000,000 from reserves to replace, transformers up at Substation 1. That is the 1 up at Green the mouth of Green Canyon. And that is 1 of the 2 substations where we have our point of common coupling with Rocky Mount Power and we bring power into the city. K. Those transformers are pushing 40 years,” Mark said.
The request reflects a larger Light & Power budget that Mark described as “just over $52,000,000.” He said a large share of that total is for purchased power (about $31 million in recent years) and that the utility budgets roughly $2,000,000 for natural gas because turbines are used in the city’s generation mix. He also noted four new generators expected to enter service in late fall and said the new generators are more efficient and may change how often the utility runs other units.
Council members asked operational and accounting questions during the presentation. Mark confirmed the city expects to order two transformers this year (roughly $2,000,000 apiece based on prior budgetary quotes) but that an official purchase order requires council approval. He also said regular oil tests show the existing units are in good shape today, but the five‑year manufacturer lead time makes earlier ordering prudent.
The presentation included uncertainty about supply, including possible tariff and global steel‑supply impacts; Mark cautioned that some transformer core steel is available only from certain global sources and “it could be impacted.” He and a colleague, Yuichi, said they were keeping a close watch on purchase‑power market pressures.
Next steps described in the workshop: staff will seek council approval to include the replacement in this year’s capital plan and prepare any necessary purchase orders; no formal motion or council vote was recorded in the workshop discussion.
The discussion is part of the utility’s broader annual budget review, which staff said will be followed by more detailed capital and procurement steps if council approves use of reserves.
