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Two wind-turbine generators fail; officials warn of higher energy purchase costs though rates not yet expected to rise
Summary
Council and staff reported two wind-turbine generator failures, said the city received a $50,000 lost-revenue insurance payment and is pursuing further claims, and warned that losing both turbines could require buying up to roughly $150,000–$300,000 of replacement energy on the MISO market; staff said replacements are being budgeted.
City utilities staff told the Geneseo City Council that two wind-turbine generators have failed and that the city has begun insurance and repair planning. "We also received $50,000 lost revenue check for that today," a utilities staff member said, noting they will submit a claim to insurance and send the failed unit to Vensys for analysis.
Officials described the practical consequences if both turbines remain offline: the city will have to purchase power on the MISO market. The staff estimated an additional $130,000–$150,000 to buy replacement energy for the remainder of the year and said purchases could approach roughly $300,000 if both generators are down. "So we have to look at that…that's why we're getting the quotes to do both generators," the staff member said, adding that the work will be included in capital planning for next year.
Council members asked whether higher rates would be necessary. The utilities staff said it "depends on what the actual price is on MISO" and added, "Now is it going to raise rates? I don't believe so," but emphasized the need to plan for capital replacements of generators and blade bearings and to obtain manufacturer parts.
Staff also discussed parts sourcing constraints: the city's existing generators are manufacturer-specific and replacements generally must come from the original manufacturer. Council members raised concerns about lead times when sourcing parts internationally; staff acknowledged that some parts are harder to find for older machines and that work will be coordinated to minimize mobilization costs by doing both generators and blade maintenance together.
The council asked staff to provide cost quotes and to return with a plan for replacement timing and budget implications. No rate change was approved at the meeting; staff said they will include the project in next year’s capital planning and continue to monitor MISO prices and insurance outcomes.
