CITY COUNCIL AGENDA ITEM
ACTION REQUESTED:
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Approve the award of Bid 25-029, New Substation Transformer, to WEG Transformers USA LLC for an amount not to exceed $2,111,500 and for a 46-month term
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DEPARTMENT: Electric Utility
SUBMITTED BY: Brian Groth, Director
BOARD/COMMISSION REVIEW:
N/A
BACKGROUND:
The Naperville Electric Utility (Utility) operates 37 substation transformers that step transmission voltage down to lower voltages for distribution throughout the City.
The Tollway Substation operates a three-winding transformer, known as 30XA. This transformer services distribution circuits and customers as well as a 34kV sub-transmission network that feeds smaller substations such as Indian Hill and Washington substations.
On September 7, 2024, the 30XA transformer failed. Subsequent analysis and an internal inspection verified that the windings of the transformer had failed, and the unit could not be returned to service.
Due to redundancy in design of the system, the loss of this one transformer has not created any extended ongoing outages. However, the Utility is now in a backup contingency configuration. This means that a critical element is out of service and stress is being added on the backup/alternate equipment to maintain service to all customers.
Under peak loading conditions, or in the event that another critical component goes off-line, it is not certain that the Utility could maintain service to all of the City’s customers.
In March 2025, the Naperville Electric Utility issued Bid 25-029, New Substation Transformer, to solicit bids for the replacement of the transformer.
DISCUSSION:
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Advertisement Date: |
03/07/2025 |
Notices Sent: |
232 |
|
Opening Date: |
05/09/2025 |
Planholders: |
59 |
|
|
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Proposals Received: |
03 |
Bids were received from the following vendors:
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Vendor Name |
Proposed Cost |
|
Engineer’s Estimate |
$2,000,000 |
|
WEG Transformers USA LLC |
$2,111,500 |
|
Niagara Power Transformer, LLC |
$2,164,229 |
|
KW Associates |
$2,688,000 |
The bid included pricing for three different transformer configurations. The base bid was for a like-for-like replacement of the failed transformer. However, this option posed a higher cost and introduced a significant contingency risk, potentially affecting a large number of customers for over two years due to the extended lead time.
Alternate Bid 1 offered the replacement of the system spare transformer, utilizing the Utility’s standard bushing configuration.
Alternate Bid 2 proposed purchasing a new transformer for future use without standard bushing configuration. This option would enable the redeployment of existing transformers at the Tollway or Westside Substations.
After a comprehensive evaluation of all options, including rebuilding or relocating existing transformers, the most cost-effective and time-efficient solution was determined to be Alternate Bid 1. This involves purchasing a new spare transformer with the Utility’s standard bushing configuration.
Work to return the Tollway Substation to its normal configuration will include relocating an under-utilized transformer at the Utility’s Westside Substation and replacing it with the system spare transformer which is housed at the Utility’s Route 59 Substation. The City will temporarily be without a backup transformer of this size until the newly procured transformer is available and placed on the existing foundation at the Route 59 Substation.
WEG Transformers USA LLC submitted the lowest bid for the replacement transformer. In addition to offering the most cost-effective proposal, WEG Transformers USA LLC also quoted the shortest lead time at 31 months.
The completion date of this project is April 30, 2029.
FISCAL IMPACT:
CIP #: EU086 - Tollway Substation Reliability Upgrades
The requested award is expensed to the Electric Utility Infrastructure account listed below. The requested award totals $2,111,500; however, most of that expense will not be realized until future years and will be budgeted accordingly.
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Account Number |
Fund Description |
Total Budget Amount |
|
40251300-551502 |
Electric Utility Fund |
$27,261,400 |