NEW ULM - The New Ulm Public Utilities Commission voted Thursday to pursue a contract with Vestas-Americas Wind Technology, Inc. to provide up to five wind turbines with a total production capacity of up to 10.5 megawatts.
However, because there are still some unresolved issues, City Attorney Hugh Nierengarten advised that the other three bidders not be notified until those issues are settled.
If the NUPUC goes ahead with Vestas as its equipment supplier, the price tag on five units of the V82 model would be approximately $12,226,500. The price is based on the current Euro/U.S. Dollar exchange rates. NUPUC would be making a down payment estimated at $1.2 million, Planning and Development Engineer Patrick Wrase told the commission.
The clincher, Wrase said, was that the Vestas offer includes a five-year comprehensive warranty and service package. The Vestas offer also includes "a 95-percent warranty for both the guaranteed performance and availability while other manufacturers offered lesser or no guarantee at all," he said.
Five criteria were considered in making the final choice.
They included cost of power produced, guaranteed performance, guaranteed availability, manufacturer's stability, proximity to service [manufacturer's closest maintenance facility], service record reliability of offered wind energy equipment, and consideration for American production facilities, Wrase said.
"The offer from Vestas Americas provides the best overall value for the New Ulm Wind Energy Project."
The commissioners agreed.
The commission also voted to receive a communication from the Minnesota Public Utilities Commission regarding New Ulm Public Utilities Commission's application for a Large Wind Energy Conversion System Site permit for the New Ulm Wind Project in Nicollet County.
NUPUC was notified that its application will be heard at the commission's regularly scheduled meeting on Thursday, June 11, at 9:30 a.m.
The application (Docket No. #282/WS-09-178) has been reviewed by the Minnesota Office of Energy Security Energy Facility Permitting Staff. The issue to be addressed by the MPUC is "Should the Public Utilities Commission accept the New Ulm Public Utilities Commission Site Permit Application for a Large Wind Energy Conversion System as complete and assign a Public Advisor?"
Ron Larsen can be reached at rlarsen@nujournal.com