NEW ULM — After counting on the Boiler No. 4 conversion being a part of its long-term power strategy, the New Ulm Public Utilities Commission couldn’t be blamed for being caught off guard by “sticker shock” Tuesday.
Just prior to their regular meeting, commissioners heard a very technically detailed description of what would be involved in converting the boiler to solid fuel firing from John La Fond, manager of process technologies for Jansen Combustion and Boiler Technologies, Inc.
La Fond took the commissioners through the engineering process step-by-step, outlining a system that “would be built to last another 40 years if not more.” However, it was at the bottom line where the wind went out of the sails.
His budget cost estimate summary, which he said could be off plus or minus 30 percent, identified a total project installed cost of $28,805,000. Almost exactly half of that amount would go for an outdoor fuel storage and handling system that would provide 10 days’ worth of storage for Powder River Basin coal and other refuse-derived fuel.
When the commission revisited Jansen’s engineering findings in its regular meeting, it was clear that the commission wanted to take a long, long hard look at the project.
While NUPUC’s utility planning and development engineer, Patrick Wrase, outlined several options, including examining alternatives to the fuel storage and delivery system outlined in the Jansen report, the commission directed staff to analyze the report’s recommendations, develop possible alternative fuel handling systems and determine the economic feasibility of the project.
Director Gary Gleisner summed up his feelings about the project in a few words: “What concerns me is the increased debt load.”
In other action:
— The commission awarded the contract for redoing the entrance to the New Ulm Public Utilities administration building to Heymann Construction Co., with its low bid of $67,738. That was 21.81 percent below the Engineer’s estimate of $86,631.89, staff said. A total of $57,000 had been budgeted in 2008 for the project.
— The commission also accepted a bid of $61,116.09 by Trenchers Plus for supplying a 2008 Backhoe/Trencher combination unit for use by the utility’s gas department.
— Meter Chief Bill Petersen updated the commission on the utility’s automated meter reading program. He reported 69 percent of the utility’s 18,838 meters have been automated for remote reading. He estimated the conversion should be complete within three years.
— Commissioners learned work at the wastewater treatment plant to further reduce the amount of phosphorus in its discharge should be completed and operational in June.
After four months, the utility is showing a net margin of $611,418 which is about $100,000 shy of the budgeted $715,915.
