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Decision Tabled on $11-Million Electrical Generator

By John Nixon

11/04/2014

(KLZA)-- A decision on whether or not to spend approximately $11-million for an additional electrical generator at the Falls City Power Plant was tabled Monday night.

A joint meeting of the City Council and Falls City Board of Public Works was held to hear a presentation on additional generation from consulting engineers Lutz, Daily and Brain.

Board of Public Works Chairman Merle Veigel said some of the eight generators the City has are 80 years old and the newest ones are 30-plus and more than 40 years old. The City is basically down to two reliable generators and if one goes down, it could mean the City could not meet the needs of electrical customers.

Additional generation is something that has been discussed for many years. After reviewing the study the Board of Public Works decided to recommend the City install another electrical generator.

Tom Day with the engineering firm said that relying on an outside source for power is becoming more concerning noting the age of the line delivering power to Falls City and a history of a number of outages. He said with a new generator, there would be enough capacity to keep the city going without an outside source of power.

The firm looked at various options for location of a new generator and the type that would be best for the City. Tom Lutz explained, because of familiarity with engine generators and other factors that was the recommendation over a combustion turbine.

The $11-million price tag would create an estimated annual debt load in excess of $300,000 for the City. Rate payers will be stuck with that bill. Lutz said it would require a 7.1-percent increase in rates above rate hikes already scheduled. In order to lessen the impact on consumers, he said the rate increase could be factored in over a three-year period.

Council President Jerry Oliver said he was ready to vote in favor of adding the new generator but said if other Council members would like to think about it more it could be tabled, which is the action taken. It is expected the Council will take action on the BPW recommendation during their November 17th meeting.

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