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Detroit Lakes utility awards $13.6 million contract for new 13.7 MW generator
Summary
The Detroit Lakes Public Utilities commission accepted a negotiated $13,624,601 bid from Solar Turbines for a single 13.7‑megawatt generation unit to replace aging capacity; the council approved awarding the contract after engineering review and contingent legal review of the contract.
The Detroit Lakes Public Utilities commission and city council voted to accept a negotiated bid of $13,624,601 from Solar Turbines for a single 13.7‑megawatt generation unit, a purchase utility officials said will replace an aging jet turbine and improve local capacity.
“Biggest reason is our existing jet turbine is almost as old as I am,” said Vernel Roberts, the utilities general manager, explaining the need to modernize local generation and noting negotiated savings from the original bids. Roberts said the single‑unit approach provides a lower total cost and that Missouri River (the wholesale/partner organization named in the packet) will provide an upfront payment and monthly capacity payments that improve the project’s affordability.
DGR Engineering and utility staff reviewed two bid approaches: two smaller units (originally priced about $18.88 million) versus a single larger 13.7‑MW unit (originally priced around $15.0 million). Negotiations with Solar Turbines reduced the single‑unit price to roughly $13.62 million. Roberts emphasized that the contract as presented covers the generation unit only and does not include the facility construction work, black‑start options or remaining substation work; final contract execution is contingent on legal review.
The council’s motion to accept the bid and award the contract passed by voice vote. The council and utilities commission also discussed follow‑up items, including decommissioning the old turbine and clarifying whether additional substation work or a black‑start generator will be procured separately.
The public utilities commission praised utility staff for recent recognitions from the American Public Power Association and described local crews’ volunteer work supplying power to homes on the Navajo Nation through a mutual‑aid project. Council members thanked utility staff and asked that the legal review proceed prior to final contract signing.
Next steps: legal review and final contract execution with Solar Turbines; separate procurements and construction planning for the generation facility and substation work were described as forthcoming.
