NEW ULM — The Public Utilities Commission (PUC) on Tuesday awarded a bid for the installation of a second transformer at the Southside Substation.

The commission awarded the bid, totaling $237,096, to Conductor Power. The original engineer’s estimate was $425,000, so the project remains under budget.

The substation had been a concern for some time, according to documents. With industrial expansion in the area, a second transformer is considered necessary to carry the power load.

The 69-kilovolt transformer is expected to be delivered the first week of March. It was delayed due to a testing schedule. However, the project is not expected to be affected.

In other news:

• The PUC awarded a contract for a gas system analysis to Lake Superior Consulting (LSC). The cost is $62,163.

“What we want to do is a system analysis of our gas system, which has never been done before,” Natural Gas Supervisor David O’Brien said.

The analysis would look at bottlenecks, corrosion, capacity and overall system performance. LSC was more expensive than other firms but was recommended as most feasible. One firm could not perform a part of the contract, and another used software that could cause compatibility issues.

• The PUC authorized the city manager to accept and sign a proposal for a forensic review and possible remediation options for an erosion problem threatening a 3-million gallon reservoir.

Short, Elliot and Hendrickson Inc. will provide the service to the reservoir at the intersection of Heinenhill and Monument Streets, for $14,400.

If left unchecked, the continuing erosion could damage the reservoir, which would require more expensive intervention, possibly including replacing the tank.

Connor Cummiskey can be emailed at ccummiskey@nujournal.com.