HCDA says design underway and roughly $40 million secured to expand electrical connections off Navy system

The Hawaii Community Development Authority received an informational update Oct. 1 on plans and funding to connect buildings now served by the U.S. Navy to the island electrical distribution system, HCDA staff said at the authority’s meeting in Honolulu.

HCDA Director of Capital Improvements Craig McGinnis told board members the authority has finalized engineering contracts and started design work after securing roughly $18 million in initial Navy funding, a $9 million Navy addendum and a $12 million state appropriation for the Saratoga Avenue upgrade project. “So in summary, HCA has, secured, close to 40,000,000 in combined federal, and state funding,” McGinnis said.

The update matters because the projects are intended to reduce reliance on the Navy’s local distribution system and allow selected buildings to receive electricity from Hawaiian Electric’s grid. McGinnis said the original task order provided funding to connect buildings in three parcels along Enterprise Avenue — including the Hawaii Army National Guard site — and the September addendum expands the scope to 12 additional parcels. The state appropriation is tied to the Saratoga Avenue distribution upgrade.

Board members pressed staff for practical details and timing. McGinnis said design work has begun and that HCDA has held a kickoff with the consultant; a preliminary request has been sent to Hawaiian Electric Co. and staff are waiting for a response. In response to a question about schedule, McGinnis said the design phase is expected to run about six to 12 months and that the authority will update the board when construction scheduling is known. “The contract’s been signed and the, we’ve had the kickoff meeting with the consultant. So, the design work, is underway,” he said.

Board members also asked who would remain on the Navy power system after the funded phases. McGinnis said the current funding will transition only a portion of Navy customers and that the Navy may need to seek additional funding for later phases. He also said some parcels have only one or two buildings; the Hawaii Army National Guard currently has 13 buildings that are Navy customers.

On other technical questions, McGinnis said the Navy will remove its existing distribution under a separate contract and HCDA may need to perform hookup work. He said the authority has not yet determined whether new circuits will be underground, overhead or run parallel to existing lines. Regarding ownership of power poles along Enterprise and Saratoga, McGinnis said staff will research that as part of the engineering analysis. When asked whether the HECO power study is public, McGinnis replied that it is confidential.

No formal board action was taken on the electrical update; the presentation was informational. The board did approve the regular meeting minutes from Aug. 6, 2025 during the same session.

Next steps described in the presentation include RHA Design Services refining cost estimates and prioritizing customer connections, completing preliminary design, obtaining Hawaiian Electric responses to the authority’s requests, and returning to the board with construction timing and any funding shortfalls identified.

The matter will remain contingent on HECO’s technical responses and any future funding requests by the Navy or other sources for later phases.