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Substation 4 transformer draws $243,000 in tariffs; Substation 1 needs LTC repairs and distribution upgrades
Summary
Staff told the commission that tariffs added about $243,000 to a transformer purchase from Korea for Substation 4, and flagged arcing in the Substation 1 load-tap changer with estimated repairs and longer-term distribution upgrades required to support a 35 MVA unit.
Staff told the commission that City Council had approved tariff adjustments on the Substation 4 transformer purchased from Korea, adding roughly $243,000 in additional tariffs; staff said whether a tariff refund will be available is not yet known. “It ended up by $243,000 of additional tariffs for that transformer since we bought that transformer from Korea,” the staff member said.
Separately, staff described internal arcing detected in the Substation 1 load‑tap changer (LTC) through oil‑gas analysis (high ethylene) and estimated about $20,000 for immediate repairs, noting that permanent distribution and breaker upgrades will be required if the city intends to fully utilize a 35 MVA transformer at Substation 1. Staff said the city is preparing to stage transformers and consider swaps to avoid unnecessary delivery if possible.
