Fort Pierce Utilities Authority approves GRIP-funded relay purchase and transformer contract amendment

The Fort Pierce Utilities Authority board on May 6, 2025 approved two GRIP-funded actions to strengthen the city’s electric grid: a $20,000 capital budget increase for fiscal year 2025 to cover a one-time, sole-source purchase of 25 protective relays from Schweitzer Engineering Laboratories (not to exceed $214,480.18) and Amendment No. 3 to the substation transformer contract with Hitachi Energy USA Inc. to order four distribution transformers and adjust contract totals and timing.

The agenda items are part of the U.S. Department of Energy’s Grid Resilience and Innovation Partnerships (GRIP) program. Eric Meyer, gas and electric supervising engineer, told the board GRIP “is the U.S. Department of Energy’s effort ... to enhance grid flexibility and improve the resilience of the power system against extreme weather threats.” Meyer said the grant application included upgrades to auto transformers, distribution power transformers, substation protection systems and distribution line protection; the relay purchase is for protection at the Totten 69 kV substation.

The relays are Schweitzer-brand devices the utility has standardized on, Meyer said, and the 25-unit purchase is designated by staff as fully reimbursable under the GRIP award. Board materials requested (A) an increase to the fiscal-year-2025 capital budget of $20,000 in grant funding and (B) a sole-source purchase of 25 electronic relays from Schweitzer Engineering Laboratories of Pullman, Washington in an amount not to exceed $214,480.18. The motion to approve carried with all voting members present voting yes (Mrs. Bennett; Mrs. Gibbons; Mayor Hudson; Mr. Fee).

Staff also asked the board to approve Amendment No. 3 to the existing transformer contract with Hitachi Energy USA Inc. The original contract (approved Nov. 5, 2019) called for six substation power transformers; two have been installed and the remaining four will be procured under the GRIP-funded work. Under the amendment staff requested (A) replacement of four transformers and an increase to the not-to-exceed contract amount for equipment to $3,790,740, (B) an increase to substation transformer services not-to-exceed $424,400, and (C) an extension of the contract term through Dec. 31, 2027, contingent on required certificates of insurance.

As a condition of the GRIP award, FPUA must provide a local match. Staff said the required match for the transformer purchase is $2,580,000, planned to be remitted on delivery of the four transformer units scheduled for fiscal year 2027. Board members asked how the match would be funded; staff answered the match is planned to come from rates and that budgeting for it is being incorporated into the utility’s multi-year budget preparations. The amendment passed on a roll call with all voting members present voting yes (Bennett; Gibbons; Mayor Hudson; Fee).

Board discussion included technical and lifecycle details. Board members asked about expected lifespan and capacity. Meyer and other staff said typical service life for large power transformers is about 25 years with maintenance; the older units being replaced had been in service 35–40 years and are now more heavily loaded. Staff said the new transformers increase capacity by roughly 30% per unit, improving flexibility to serve future load growth.

Board members and staff also discussed the federal reimbursement process. A staff member noted the utility has been in contact with the Department of Energy and that reimbursements for existing, executed grant contracts proceed through the normal quarterly submission process; staff said some federal-level contract activity not yet executed had experienced delays, but the grant work described to the board is considered secure by the grantor.

The two items together constitute a coordinated effort under the GRIP grant to reduce outage risk and modernize protection and transformer capacity across multiple substations. Staff named the target locations for the transformer replacements as Long Wind substation (two units), Savannah substation (one unit) and King substation (one unit). Staff said completing the contract will result in three substations having full sets of new transformers.

Votes at a glance - Relay purchase & FY2025 budget increase (Totten 69 kV relays): approved; sole-source purchase not to exceed $214,480.18; FY2025 grant budget increase $20,000; vote recorded as unanimous among four voting members present. - Amendment No. 3 to transformer contract (Hitachi Energy USA Inc.): approved; add four transformers; equipment NTE $3,790,740; services NTE $424,400; contract extended through Dec. 31, 2027; required local match $2,580,000 scheduled for fiscal 2027; vote recorded as unanimous among four voting members present.

The board’s next scheduled budget workshop is May 20 at the Energy Services Center, where staff said the FY2026 budget and GRIP-related items will be discussed in greater detail.