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Forensic engineers are expected next week in Morgan City to get a firsthand look at the 100-megawatt transformer that apparently overheated and caught fire on June 26.
Mayor Tim Matte said the city’s insurance provider, Lloyds of London, hired Verite’ Forensic Engineering Inc. to analyze the damaged transformer.
“The process is this: They will write us a check for the depreciated value of the transformer, once they settle the claim,” Matte said. “Then, upon our purchase of the replacement, they will write us a check for the balance up to the replacement cost of the transformer.”
A 60-megawatt transformer base – with cooling features that raise the capacity to 100 megawatts – will be purchased, he said.
Prior to the late June fire, the city was providing power to 6,300 utility customers, via the Louisiana Energy and Power Authority, using the 100-megawatt transformer. Morgan City has been a member of LEPA since the early 1980s.
The city is currently using a natural gas steam generator and a 45-megawatt transformer, both of which are more than 25 years old, to replace the damaged transformer.
Customers continue to report random outages, although the initial explosion occurred nearly two months ago, Matte said.
Utility Director Bill Cefalu said, however, the situation will soon improve.
A 69,000-volt line is being installed, which will connect the city power plant with three power substations that supply power citywide.
“Once that is done, the substations will never be interrupted because there would always be one section of that loop feeding a substation,” he explained.
“We will bring up the integrity of the system by year’s end,” he said. “Until then, we’re doing all we can to make sure we’re bringing the best we can bring. I’m confident in what we have working now.”
Additionally, Cefalu said his crew is bringing an addition steam generator online.
“Again, we’re doing our best. It is really up to the mayor to ask the people to decide how much more dependability they want to pay for,” he said.
LEPA is slated to build a 64-megawatt natural gas-fired plant in Morgan City in 2015, and the city will purchase power from the plant.
“Our problems will be over then, for the most part,” he said. “When we get online in 2015 with the new system, we will be in much better shape.”
In the meantime, the city is waiting for a final check from the insurance carrier – a process that could take up to eight months. Matte and Cefalu agree the city is holding on to taxpayers’ money for now.
“You just don’t open a catalogue and pick out a 100-megawatt transformer and say, ‘That’s the one I want.’ It’s not that easy,” Cefalu said. “Most are built to specifications, and they cost more than $1.5 million.”
When met with a room full of disgruntled business owners and managers at a recent St. Mary Parish Industrial Group luncheon last week, Cefalu polled the crowd, asking, “Does anyone here want to raise your rates to pay for an upgrade?”
When no hands were raised, he replied, “I didn’t think so.”
Morgan City’s 100-megawatt transformer overheated and burned in a June 26 fire (pictured). City insurer Lloyds of London is sending forensic engineers to investigate the blaze next week. Mayor Tim Matte said without a check, a replacement unit is on hold.
