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Council approves change order to buy and overhaul replacement engine after turbine failure; insurer to cover part of cost
Summary
After a combustion turbine failure, utility staff asked council to approve purchasing and overhauling a same‑vintage engine (with design modifications) and leasing a temporary unit during overhaul. Staff said the repair path costs about $1.3M versus $25–30M for a new modern replacement and that insurance will cover roughly $750K.
Utility operations staff explained to the City Council that a combustion turbine (CT‑1, a 1970s vintage unit) suffered an internal failure and an inspection identified a thin blade‑root design flaw that allowed a blade to crack and damage the engine. Staff recommended purchasing another engine of the same vintage, completing an overhaul that includes a thicker, serviceable root design to prevent recurrence, and leasing a temporary engine while the overhaul (estimated 4–6 months) is performed.
Rationale and cost: staff said the overhaul/purchase path costs roughly $1.3 million to retain about 17 megawatts of capacity. Replacing the unit with a new modern equivalent that would deliver similar megawatts would be far costlier — staff cited a $25–30 million estimate. Staff also emphasized the operational value of CT‑1: it provides fast start and black‑start capability (starts from cold in about 15 minutes), and it can operate in very cold conditions unlike some other units.
Insurance and funding: staff reported the city has filed a claim; they expect roughly $750,000 to be recovered from insurance. The balance will be covered temporarily from a capital project (Ash Pond CIP savings) with intent to replenish when insurance proceeds arrive.
Council questions: members asked why another same‑vintage engine is being chosen and whether a modern replacement was considered; staff said manufacturer support and overhaul industry experience argued for the overhaul route, and Solzer (vendor) will perform a design modification to the rotor root to fix the failure mode. Council also asked about lifecycle and future replacement timing; staff said ongoing life assessments of units 7 and 8 and a wider replacement strategy are underway.
Action: council approved the change order (alternative 1 as amended) by roll call; staff will proceed with purchase, overhaul and leasing arrangements and return with any updates related to insurance recovery.
