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Augusta council approves $1.73 million upgrade to Generating Unit M4
Summary
The Augusta City Council approved Resolution 2026-9 authorizing modernization of Generating Unit M4 and a contract with Peaker Services Inc. for control-system upgrades, authorizing up to $1.8 million and directing coordination with KPP Energy for potential funding support.
The Augusta City Council on June 15 approved a resolution authorizing modernization of Generating Unit M4 and a contract with Peaker Services Inc. to upgrade the engine control system. The resolution, presented by staff and public utilities director Tim Johnson, passed on a voice vote.
Tim Johnson, director of public utilities, told the council the M4 engine’s control system is obsolete, replacement parts are increasingly hard to obtain and control failures have been a primary source of outages. He said the upgrade would improve reliability, provide modern parts and technical support, extend the asset’s useful life and protect roughly $100,000 a year in generation revenue the city realizes when the unit is available during high-load or emergency periods. Johnson said the engine is more than 20 years old and has about 3,950 operating hours, while similar engines can operate for more than 100,000 hours if well maintained.
The staff recommendation included a contract with Peaker Services Inc. in the amount of $1,731,827.37. Council moved to approve the modernization and to authorize the city manager to implement the project at a cost not to exceed $1.8 million and to coordinate with KPP Energy for possible funding support. Councilmember (S3) initiated the motion; the motion received a second and passed by voice vote. The motion did not record individual named votes in the transcript.
Council discussed funding and noted that KPP Energy has been in talks to provide financial support; Tim Johnson said discussions are ongoing and no funding agreement will be finalized until the city’s contract is signed. Johnson characterized the project as an investment that avoids the significantly higher cost of replacing the entire generator and reduces the risk of outages during peak demand or extreme weather.
The contract authorization allows staff to execute administrative actions required to implement the upgrade, including coordinating any applicable external funding. Staff indicated project details and a construction timeline will be brought back as the procurement and contract steps proceed.
