The Hutchinson Utilities Commission recently awarded a bid for contract work to Fagen Inc., which will likely provide mechanical work on the new generators at the downtown power station this year.
The net price for the work is set for $3.3 million, which is $182,000 below the original estimated budget. Other proposals by Corval Constructors and Wrigley Mechanical were set at $3.5 million and $3.6 million, respectively. Fagen must now provide payment bonds to the city before the contract is made final.
Bids for the electrical portion of the work have not been awarded due to a clerical error, but the city will host a pre-bid meeting for prospective contractors Oct. 15.
In-house generators like units 6 and 7 are all about local power, according to HUC general manager Jeremy Carter.
“We use that power for our communities to provide stable, consistent prices,” he said. “If the market prices are high, we run electricity for cheaper prices than what’s on the market. If it’s a hot summer, we’ll also sell our power on the market for extra revenue, which also allows us to keep our rates low.”
Carter said HUC generates about $2.5 to $3 million per year from outside sources to keep power rates in Hutchinson stable. Where other cities generally allow wholesalers to handle their power, Hutchinson’s investment in local power allows for stability and consistency, he said.
The new Caterpillar generators, which are already installed and will replace a pair of units removed in 2013, will last up to 50 years.
Work for the project is expected to last until April 2019.
