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Malden board approves $39,875 transformer purchase to support Mayberry Stokes Gin expansion

Malden Board of Public Works · March 12, 2025
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Summary

The Malden Board of Public Works voted March 12 to buy a padmount transformer for the Mayberry Stokes Gin expansion, approving $39,875 for the purchase after Utility Director Ivone Smith recommended the board cover one transformer despite a policy that seasonal customers typically pay for their own equipment.

The Malden Board of Public Works on March 12 approved spending $39,875 to buy a padmount transformer to support the Mayberry Stokes Gin expansion, voting to purchase the unit after hearing technical and policy briefings from staff.

Utility Director Ivone Smith told the board she and Electric Distribution Coordinator Todd Jenkins met with David Mayberry about the gin’s expansion and that the facility currently runs on an outdated 3,000 kVA transformer with a 2,000 kVA unit kept as a spare. Smith said the gin is operating at about 1,911 kVA and is expected to rise to about 2,513 kVA — roughly a 25% increase — and that the upgrade requires a newer 3,000 kVA padmount transformer. Smith cited an estimated unit cost of about $39,000 each; the motion approved by the board records a purchase price of $39,875.

Smith said Mayberry asked whether the city could help pay for one of the transformers. She told the board that under current policy seasonal loads are generally expected to pay for their own transformers, but recommended BPW cover one transformer while Mayberry would pay for the other transformer plus materials and the primary underground service. The board’s formal action at the meeting authorized the purchase of a transformer; the transcript does not record a separate, final agreement on which party will pay for the second transformer or the primary service work.

Smith also reviewed rate implications: she said demand charges operate differently from per-kilowatt-hour energy charges (she cited an example demand component of 5¢ per kWh and a $5.00-per-kW monthly charge) and noted an ordinance requirement that a customer must reach 300 kW in a 12-month period, January through December, to trigger demand rates. Smith said the gin is currently at about 272 kW and will need to be monitored for a year after the expansion to determine whether it meets the demand threshold.

Board Member Woods moved to approve $39,875 for the transformer purchase; Board Member Loughary seconded and the motion passed. The transcript records the motion as passed but does not include a roll-call tally. With no further business the board adjourned at 5:21 p.m.

The board’s action funds the purchase; the transcript indicates additional procurement and coordination steps will be required before installation, and staff said they will monitor the gin’s usage for a 12-month period to determine whether demand charges will apply.