General Electric has won a contract to rebuild a major turbine that the City of Medicine Hat will keep on hand in case of a future breakdown at the city’s power plant.
The plan was outlined earlier this year to allow a quick swap-out rather than waiting months for a new unit.
On Monday council approved a $2.74-million bid by GE to rebuild and recommission sections of a power plant unit that broke down late last year.
GE is the original manufacturer of the LM6000 gas-driven turbine, and was one of two firms to bid on the job.
Utility committee chair Coun. Phil Turnbull says the power plant is producing profits for the city and money must be spent on keeping up operational capacity.
Administrators told a committee meeting early this year that replacement engines are hard to procure on short notice, and stressed that new generation projects are paid for with earnings at the power plant, not fees or non-commodity charges.
Utility commissioner Brad Maynes told council Monday that an LM6000 “represents a significant portion of our generation capacity.”
“(Breakdowns) can get quite expensive in terms of lost revenue,” he said.
Gas exemption extended
The provincial cabinet has approved a 24-year extension to rules that specifically allow the City of Medicine Hat to acquire mineral rights and property for its gas production business.
The measure was included in a list of orders in council published this week.
The statute within the Municipal Government Act gives the city latitude not typically available to municipalities when acquiring real estate. It was set to expire, though now a new term begins Jan. 1, 2020 and expires on Dec. 31, 2044.
