The city of Whitefish will be in the electrical power generating business by this fall, according to public works director John Wilson.

On Feb. 7, the Whitefish City Council unanimously approved a $545,100 bid by Dick Anderson Construction and CTA Architects to install a new turbine and generator at the city reservoir.

The turbine and generator will be custom built and delivered in the fall, and power generation is scheduled to begin in November. The city received four statements of qualifications and had three finalists for the installation work.

The project’s $600,000 estimated cost will be paid for with a $200,000 federal grant and a $400,000 pre-payment by Flathead Electric Cooperative for power generated by the facility over the next 5-7 years.

“FEC’s board of directors has shown strong support for our power purchase agreement, and we will wait for their written commitment on the $400,000 pre-payment before the city manager executes our contract for design-build services,” Wilson told the council.

Councilor Ryan Friel asked how local contractor Mother’s Power had fared under the state’s design-build bid laws. Councilor Phil Mitchell, who served on the committee overseeing the bidding process, said he also wanted to see a local contractor get the job.

Wilson said money from the sale of power will be used to offset about $100,000 a year in electrical costs for the city’s water and sewer plants.