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IPL presents $23.5 million capital plan for 2025–26; staff point to multi-year transformer and substation projects
Summary
Power & Light staff outlined a roughly $23.5 million capital plan for 2025–26, with two large items — Northpointe-related projects ($6.5M) and replacement of 400 MVA substation transformers ($8.5M) — elevating the year above a typical $8–10M spend.
Power & Light staff briefed the Public Utility Advisory Board on March 20 about capital projects proposed for fiscal year 2025–26 and provided a brief finance update, including a personnel introduction to the new utility finance manager.
Staff said the total next‑year capital program is about $23.5 million but noted two large projects drive the elevated total: Substation/T&D work tied to the Northpointe development (about $6.5 million) and replacement of 400 MVA substation transformers (about $8.5 million). “If you take out the subvest stuff, which is $6,500,000 and then that 400 MVA transformers, which is $8,500,000 then we're right at about $8,800,000 which is a typical year for us,” Power & Light staff said.
Other projects listed for next fiscal year include fiber‑optic replacement at substations, transmission pole replacement, targeted switchgear and battery-charger upgrades tied to Federal Energy Regulatory Commission (FERC) compliance, service center facility upgrades, remote terminal upgrades, fleet vehicle and bucket-truck replacement and a new 13 kV feeder to improve redundancy to Country Meadows and adjacent subdivisions.
Staff flagged supply‑chain and lead times as a financial and implementation constraint: transformers recently ordered have an expected delivery in 2028. The presenter said the finance picture shows a positive reserve movement of about $12.7 million but cautioned that several capital expenditures are still outstanding and will be drawn from reserves. “We're expecting those [transformers] in 2028, I believe,” staff said.
The board also welcomed Amy Finch, the new utility finance manager, who will develop more visual financial reporting; staff said the finance director had no immediate concerns beyond typical conservative budgeting and noted interest income has been higher than budgeted in the current year.
Why it matters: the capital program funds reliability, transmission and distribution upgrades and replacement of aging large assets; long lead times and large price tags for transformers and substation work affect reserves and timing for rate and budget decisions.
What comes next: staff will proceed with design and procurement steps on major projects, continue to track lead times and return with finance reporting improvements.
