Budget Adjustment and Approval for Professional Engineering Services
Staff has requested a proposal from the Department's contract Professional Electrical Engineer firm, T & D Services, to accomplish a study of how to serve the Mendoza substation from Public Service of New Mexico (PNM) transmission lines, rather than Tri-State Generation and Transmission Association (T-S) transmission lines. T-S calculates their transmission wheeling rates much differently than PNM. For example, the Palo Verde nuclear plant had an increase in pricing from $40 per megawatt to $400 per megawatt on one hour of one day. Thus, the City's August bill from T-S was $60,725. The July bill from T-S was $50,105 for the same services.
The departments power scheduling consultant has advised that getting away from T-S entirely could save the City up to $700,000 per year.
Staff is asking for a budget adjustment in the amount of $95,000.00, which includes GRT and a small contingency of $4,775.00, and approval of a proposal from our contract professional engineering services consultants to study a pathway to connect our Mendoza substation to the alternative PNM transmission system. The cost of this proposed study will be $90,224.31 including GRT.
- Fiscal Impact:
- A transfer of available funds from Account 507 Reserve Balance into Account 507-6061-442-45-30.
- Staff recommends approval of the budget adjustment and the proposed transmission study.
- Speaker's Name
- John Wheeler