On the heels of a nearly complete $14 million wastewater treatment plant upgrade, the city of Luverne is investing more than $11 million into the historic power plant on East Main Street at the Rock River.
The project, which includes two new 3,100 kW generators at $3 million each, will ensure Luverne’s backup generators keep the city’s lights on in the event of a power outage.
The improvements will also allow the city to provide increased backup power for Missouri River Energy Services, which contracts with Luverne for that energy.
On Tuesday night’s agenda, the council took action on a resolution to issue electric revenue bonds in the amount of $11.865 million to make improvements that include:
•modernize the east substation and the associated switchgear,
•erect a control building,
•install two new 3-megawatt diesel generators in the power plant, and
•make all of the necessary improvements to the power plant to house the generation equipment.
City Administrator John Call said the improvements to the east substation are necessary to modernize the system so that it is reliable and up to current electrical specifications.
“The diesel generation project will be a very important reliability asset to the city in emergency situations,” Call wrote in the agenda notes, referring to ice storms, high winds and other situations.
“Also, the capacity agreement with our electrical partner (Missouri River Energy Services), will contribute $6.7 million in capacity payments over a 30-year period.”
Heavy equipment is mobilizing on site and work has started on the project.