Transformer provided power to half of city in need of replacement

Earlier this week, the city council gave the electric department the go ahead to take steps toward acquiring a new electric sub station transformer. This new station would replace the city’s southern hub, which has been experiencing some trouble including worn parts, a deteriorated power factor and methane gas emissions.

Sidney’s electric superintendent, Mike Palmer, presented the issue to the council last month and returned to this week’s meeting with additional information.

The recommended maintenance costs to get the current station in better working order are almost $150,000, but these fixes are not guaranteed to work.

“That’s the whole secret, is it might not fix it and then we’re back to square one and we’ve spent $144,000 and it didn’t do anything,” Palmer said.

A rebuilt transformer could cost anywhere from $300,000-$425,000 while a new transformer could cost anywhere from $500,000-$750,000.

“I guess we’re just still looking for some direction as far as what wishes are,” Palmer said. “This is not a budgeted item.”

Although those who sell the machines usually say the typical lifespan for a transformer is 30 years, Palmer believes most cities use them longer because they are so expensive. The current south substation is around 30 years old.

“It’s getting close to end of life,” Palmer said.

The electric department is concerned that it could quit working. With this equipment, there are red flags that might indicate something is wrong, but the station could also shut down unexpectedly.

Councilman Roger Gallaway asked when the city needed to take action on this issue and if it could wait for next year’s budget.

“I hate to use the term ‘we’re on borrowed time,’ but we kind of are,” Palmer said.

Palmer recommended that the city trade in the old north substation transformer not currently in use, as well as the south station transformer, which is currently experiencing issues, for a new one.

So much goes on inside a transformer, that if it were to break down the question of repairing it wouldn’t just include replacing a few parts. It would be very costly.

“If that one goes down, it’s gonna be days before we could get another one in here and get hooked up and get functioning,” Palmer said.

If the city did have to use a temporary mobile substation, it would be very costly.

Sidney’s mayor Wendall Gaston agreed that the best solution would be to trade in the two old stations and buy a new one. This would hopefully save the city from dealing with issues with the equipment anytime in the near future.

Olsson and Associates estimated that it could formulate bid speculations for a new south sub station transformer for around $10,000. This would give the city a firm number for transformer costs.

“If this goes out tomorrow, who’s affected?” Gaston asked.

Palmer answered that this transformer supplied half the town’s power. Palmer added that he didn’t wish to make citizens fearful of losing electricity.

At this time if the city loses the south sub station and the new feeder planned for the north substation is in place at that point, the electric department could still supply power to the town.

“But at that point, literally all your eggs are in one basket,” Palmer said. “So if that happens then something happens at the north sub station, then we’re dark essentially.”

Gallaway agreed that it didn’t make sense to attempt to fix the old transformer with the risk that it might not work.

“What do we have to do differently to make one last 40 years than the one we had that only lasted 30 years?” asked councilman Chris Gay.

Palmer answered that the city should have a more stringent maintenance program. One can tell a lot from oil tests on the equipment and those should be done more frequently. Gay wondered how a rebuilt transformer and a new transformer differed.

“My personal opinion is that if you’re going to do it, buy a new one,” Palmer said. “These are the most important part of the entire electric system. Without them, we don’t serve power.”

New transformers are held at a higher efficiency standard than old ones as well.

Gay emphasized the need for a better maintenance plan if the city buys a new transformer.

Palmer agreed and confirmed that a maintenance program will be covered in the department’s comprehensive plan. Palmer is fairly confident that the city will have to add a third substation sometime in the near future.

“There’s another big ding coming,” Palmer said.

The city council authorized the electric department to commission designs for a new transformer and look into salvaging the south station currently in use and old north station which was replaced several years ago.