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AI- 7942   8. 2.    
Regular City Council Meeting
Meeting Date: 02/12/2019  

Information
Agenda Item
Budget Amendment Ordinance 1st Reading - Finance: Consider Budget Ordinance Amendment 10, amending the FY 2018-19 Budget for municipal purposes respecting the Lubbock Power and Light Operating and Capital Fund to Establish Capital Improvement Project 92613, Massengale Unit 8 – Hot Section Overhaul, and appropriate funding; providing for filing; and providing for a savings clause.
Item Summary
I. Establish Capital Improvement Project 92613, Massengale Unit 8 – Hot Section Overhaul, and appropriate funding in the amount of $2,750,000. The project will utilize cash funding. The project scope and justification is as follows:  
 
Project Scope: This project is for a hot section overhaul, repair of internal and external discrepancies, along with required service bulletins for the gas turbine on Unit 8 at Massengale Station.
 
Project Justification: An internal engine borescope inspection found damage from excessive starts and thermal cycling to the General Electric LM-6000 (Unit 8) combustor and high pressure turbine assembly. Excess wear was found in the high pressure compressor that must be addressed to prevent further damage to the engine.  The external engine inspection revealed excess wear of the Original Equipment Manufacturer (OEM) limits on Stages 3-5 Variable Stator Vane (VSV) Bushings, Stage 4 VSV rings, and connecting links and loose Stage 0 and 2 VSV pins.
 
Since the previous overhaul in 2012, the engine has over 24,000 of the recommended 25,000 operating hours between hot section overhauls. The unit must be repaired and operational before June 1, 2019, in order to apply toward LP&L’s required capacity reserves in the Southwest Power Pool.

II. Amend the Lubbock Power and Light Operating Budget by increasing the transfer to Capital Program by $2,750,000, from $13,245,000 to $15,995,000.
Fiscal Impact
Included in Item Summary
Staff/Board Recommending

D. Blu Kostelich, Chief Financial Officer


Attachments
Budget Amendment 10
LP&L Resolution

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