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Commission approves storage at supplier for new green substation transformer
Summary
After a staff presentation, the commission approved storing the new transformer at the supplier (Pittsburgh Transformer) under a supplier-managed option that carries higher warranty and maintenance coverage, with staff citing a best-case cost of about $136,000 and a worst-case scenario up to $184,000.
The Madison City Commission authorized staff to pay for supplier-based storage for the new green substation transformer, selecting an option that places the transformer at the supplier’s facility (Pittsburgh Transformer) while the reconstructed substation is completed.
Staff explained the decision stems from scheduling: the transformer may arrive well before the reconstructed substation is ready, and storage is required until installation. Jamieson, speaking for staff, said the city and its consultant examined three storage options: storage at the supplier facility; storage at the existing green substation; and storage at city shops. Staff recommended the supplier option because it transfers maintenance, oil-filling and testing responsibilities to the supplier and preserves warranty coverage.
Mike Pluster, the city’s utility director, described the technical requirements: supplier storage typically includes crane picks, oil filling and testing, nitrogen systems maintenance and cabinet heaters. ‘‘If we stored it ourselves we’d have to provide power and perform inspections and testing that are beyond our employees’ usual scope,’’ Pluster said. He added supplier storage reduces the city’s responsibility for ongoing maintenance and security while the transformer waits for installation.
Staff presented cost ranges for the three options. The best-case supplier-storage cost cited was about $136,000; staff gave a worst-case supplier estimate of $184,000 (assuming additional months of storage at about $8,000 per month). Storing at the existing substation had a best-case estimate near $136,400 but may require security fencing; storing at city shops was estimated higher due to additional transport costs. Jamieson said option 1 (supplier storage) best matched the city’s risk tolerance because it shifts maintenance tasks and warranty handling to the supplier.
Commissioners asked about the project timeline for the reconstructed substation; staff said the timetable hinges on a land-swap or long-term easement with DSU and associated approvals, and that best-case construction could begin this fall with worst-case into next spring. Staff said the supplier option includes 12 months of storage in the base estimate and a worst-case of about 18 months.
A motion to approve supplier-based storage at Pittsburgh Transformer was made, seconded and approved by voice vote. Staff said the city will continue coordinating the substation site work and land-swap/easement steps with DSU. The commission did not record a detailed roll-call tally for this item on the audio transcript.
