The 111-year-old facility on the Menominee River generates power for residents and businesses in the city of Norway and parts of Norway Township.

The city in 2007 made a major design change to the dam to decrease turbulence around the six turbines and increase efficiency, City Manager Ray Anderson said.

But workers began hearing noises in the equipment in early 2015 and discovered water turbulence remained a problem, causing the metal blades on the turbines — the runners — to twist and crack, Anderson said.

Companies did a 3D computer scan of the components to try to diagnose the problem. Runner repairs were completed in 2016, but an inspection this past May revealed they already had started cracking.

An aerial view is shown of Norway’s Sturgeon Falls Hydroelectric Facility on the Menominee River.

“We can’t repair them every year,” Anderson said.

City council members had anticipated installing two new turbine runners every other year, but the inspection results prompted them to replace all six in one project.

The council earlier this week agreed to pay $30,000 to Norcan Hydraulic Turbine Inc., of Canada to begin the engineering work.

Norcan engineers will need to find a way to decrease the water turbulence around the turbines and perhaps use a stronger metal that can better withstand the stress, Anderson said.

The city council is scheduled Sept. 18 to choose a company to do the remainder of the project work. Norcan, Canyon Hydro of Deming, Wash., and Litostroj Group of Slovenia all submitted proposals.

The project’s timeline depends on how long the engineering and fabrication phases last, but Anderson expects disassembly to start about July 2018 and be completed by about December 2018. Water levels also could play a part, as the city typically runs more turbines when the river is high.

Final project costs depend on the bids and how much work needs to be done.

The city will have about $1.5 million on hand — $750,000 that originally was budgeted for replacing just the two runners and $750,000 from insurance reimbursements. In addition, the council decided to request up to $3 million in bonds, which work much like a loan the city will have to pay back with interest over a period of years.

The bond sale will occur after a 45-day public comment period ends in early October.

Anderson believes only $1.5 million to $1.8 million of the $3 million bond amount will be needed. And by refinancing bonds from 2008, the city can get a lower interest rate that will save an estimated $1 million.

If all goes according to that plan, Anderson said, customer electric rates shouldn’t be affected.

Even though upkeep of the multi-million dollar Sturgeon Falls Hydroelectric Facility is expensive, Anderson said the cost is worth it.

“The electric utility is a huge asset to customers of the Norway area,” he said. “Producing power is cheaper than buying it.”

Norway produces 80 to 90 percent of its own power through the hydroelectric facility, leading to customer rates that are lower or comparable to published rates of other local electric companies, Anderson said.

Nikki Younk can be reached at 906-774-2772, ext. 41, or nyounk@ironmountaindailynews.com.