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Council approves $22.09 million contract for substation construction services for Denton Municipal Electric
Summary
Denton Municipal Electric recommended and council approved a contract with Northstar Energy Solutions LLC not to exceed $22,090,000 to provide substation construction services for a bundle of planned substation projects in upcoming CIP years.
The Denton City Council on March 25 approved a contract with Northstar Energy Solutions LLC for substation construction services for Denton Municipal Electric (DME), not to exceed $22,090,000.
Mark Zimmer of DME engineering said the contract will cover a set of planned substation projects in the utility’s capital improvement plan, including conduit and foundation installation, steel erection and bus installation. DME solicited proposals via RFP, received seven bids and recommended Northstar based on safety, quality, schedule and price; staff said Northstar scored highest on overall value. The contract authorization was approved by council (vote 6–0) after a motion by Representative from District 2 and a second from Representative from District 5.
Zimmer said the projects are needed both to serve new customers and to maintain system reliability; if projects are not completed, he said service to new customers could be jeopardized or outages could increase.
Why it matters: Substation and related construction work is central to supporting growth and ensuring resiliency of the electric grid for the city’s customers. The contract represents a multi-year services agreement to construct substation elements in DME’s CIP.
Next steps: DME will proceed with the substation construction work under the contract and manage project schedules and budgets through the CIP process.
