Two new diesel fuel units are being installed now at the Gallatin substation.
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Municipalities throughout Northwest Missouri have bolstered their ability to avoid expensive peak alert electricity by installing diesel fuel powered generators at substations. Two new units are being installed now at the Gallatin substation located northeast of town. Two more units are anticipated by the end of next year.
This cost-sharing and revenue sharing arrangement involves the City of Gallatin, Dean Machinery, and the Missouri Joint Municipal Electric Utility Commission. Dean Machinery retains ownership of the two Catepillar engines, generating about 1.5 megawatts of power and valued at $1.2 million. The city provides the site, pays half of the installation costs and permitting fees, and performs normal maintenance. Costs and revenues are divided by an 85%- 15% split.
Other municipalities involved in similar agreements are Bethany, Albany, Lamar and Palmyra. Gallatin was originally slated to install the Catepillar engines last year but plans here were delayed due to permitting. Dean Machinery has a similar agreement with KCP&L where 16 generator units are installed.
“The arrangement worked successfully last year, even allowing some of the municipalities to make a little money by selling power on the grid during peak demand periods,” says City Administrator Jason Helton. “First revenues are applied to cover costs.”
Gallatin operates its power plant roughly 150 hours annually, mostly when electricity demand peaks during hot summer months. Utility Supervisor Roger Loxterman explains that operation of the new units will be remotely controlled from Columbia over telephone lines. The new units most probably will operate simultaneously with the operation of the city’s power plant.