Item Coversheet
City of Independence
Postponed to 7/19

Agenda Title:

Council action is requested to issue a purchase order to General Electric International, Inc. in the amount of $1,909,344.00 for the inspection and repair of the generator rotor for Combustion Turbine H5.

Recommend approval of the purchase order contingent upon adoption of the proposed Budget Amendment for Capital Project 202211.
Executive Summary:

A ground fault has occurred on the generator rotor for Combustion Turbine H5.  The generator cannot be operated in this condition.  A proposal has been provided by General Electric, the manufacturer of the equipment, to remove, inspect, determine the cause of the fault and conduct repairs.  Depending on the severity of the fault and the scope of repairs needed, GE's worst case estimate is $1,909,344.00.  The approved budget for FY22 includes $1,518,000 for inspection and repair of the H5 unit.   A separate agenda item has been submitted to amend the budget item.

The H5 Combustion Turbine provides 17 MW of IPL's required capacity obligation to SPP.  In addition, this generator is frequently called on by SPP to meet the energy demands in the summer and fall seasons.  Repair of the H5 generator is necessary to meet these obligations.   Without the repair of the generator, IPL would be obligated to replace the represented capacity at a cost of approximately $500,000 per year.

Fiscal Impact:

Purchase order is funded through Capital Project 202211 on page 176 of the proposed FY22 Budget.  A proposed budget amendment increases the appropriation for Capital project 202211 by $391,344.00.  Total cost is $1,909,344.00.  

Department:          IPLContact Person:          Jim Nail

Power and Light DepartmentApproved
Finance DepartmentApproved
City Managers OfficeApproved
City Clerk DepartmentApproved

Council Action:          Council Action:         

GE Scope and PricingBackup Material