Progress on the HEA Soldotna Combustion Turbine Project is being affected by a delay in the delivery of the combustion turbine generator stack.
Joe Gallagher with Homer Eclectic Association told us that the local power cooperative was recently advised that the fabrication of the stack continues to experience significant delays, as a result of this information, HEA is not certain when the stack and its component equipment will be delivered to the local area.
Gallagher confirmed that without appropriate action being taken, the delay would impose a financial risk to both HEA and the general contractor working on this project and in order to mitigate this risk to both parties, on February 26th HEA terminated its agreement with the general contractor, NAES.
Gallagher told the KSRM News Department that both parties mutually agree that the termination of the existing contract is the best available option to keeping project costs within budget, and the two sides are in on-going discussions on how NAES can continue to be of service to HEA in support of the project.
Homer Electric Association officials say that the decision to terminate the contract should not be construed as reflecting poorly on NAES, its management or on the quality and progress of the work completed to date.
Gallagher said that beginning late last summer, NAES has done an excellent job on the construction of the power plant. HEA has been very satisfied with its relationship with NAES and the quality of work on the project.
Although delivery of the stack has created a delay, the Soldotna Combustion Turbine Project is still expected to be completed prior to the end of 2013.
The Soldotna Combustion Turbine Project is a component of HEA’s Independent Light generation program and will have a capacity of 48 megawatts.