1. Don Pedro Powerhouse Life Extension Project Progressing — Budget Now ~$231 Million for All Four Units The district's multi-year effort to replace all four generators and turbines at Don Pedro Powerhouse is well underway. Unit 2 was shut down for the last time in January after 55 years of service, and disassembly/reassembly work is actively in progress. The first new generator stator arrived at site in January via a 195-foot, 500,000-pound oversize load from the Port of Stockton. The project budget has grown from an original ~$190 million to approximately $231 million; staff noted supply-chain constraints, tariffs, and shipping issues as ongoing pressures and risks affecting the broader market, though the increase from last year's estimate is less than half a percent. The district is also pursuing federal DOE grants and Production/Investment Tax Credits (PTC/ITC) that could meaningfully offset costs — staff described these as "found money" not included in the original budget.
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