PUC reports $44 million winning bid for four combustion turbines; city to receive $10 million under state implementation agreement

Barbara Hale, Assistant General Manager for Power, reported that the PUC conducted a public auction of four combustion turbines on March 8 and that Energy Parts Solutions submitted the stocking‑horse offer of $11 million per unit (bulk winning bid $44 million). Hale said three bidders qualified and that the sale proceeds are subject to marketing agent commissions, marketing expenses and escrow costs. Preliminary figures in the presentation put the net proceeds near $43 million; under an implementation agreement with the State the city expects to receive $10 million that the PUC previously committed to the General Fund by June, and the State would receive roughly $32 million.

Hale described auction logistics: prospective bidders had to prequalify and post a $1 million deposit per turbine; the process included individual unit bidding followed by bulk bidding. She said final accounting was expected within days and the Commission would receive a final accounting when escrow funds were confirmed.

Commissioners asked about the state’s share and how the $10 million would be used. Hale explained the distribution was set by the earlier implementation agreement tied to the original CT project and its litigation context. Commissioner Kane and others asked staff to report back on possible uses of the city’s share; staff said the $10 million had been included in the current year’s budget and would be available by the June deadline.