Council approves $75,000 contract to begin design of Hospital Road electric delivery point modernization

The Town of Smithfield authorized a professional services contract, not to exceed $75,000, with Electrical Consulting Engineers Inc. to begin scoping and preliminary design for modernizing Electric Delivery Point No. 1 on Hospital Road.

Utilities Director Ted Kreider told the council the work advances the town’s 2015 long‑range electric distribution plan and responds to aging equipment and changes in Duke Energy transmission voltages. Kreider said one incoming feeder to the delivery point remains at 115 kV, a voltage Duke has signaled it is phasing out in favor of 230 kV, and that the town should plan a conversion to maintain reliable service.

Why it matters: Kreider said modernizing the Hospital Road yard into a single substation that can both transform and route power — similar to the town’s Brogdon Road facility — will improve redundancy and could reduce the size and frequency of outages when the system is stressed. He said the total construction cost will likely be multi‑million dollars and “may necessitate a loan,” so the town is beginning with consulting services to define scope, schedule and costs.

Council action: Following presentation and questions about schedule, funding sources and coordination with Duke Energy, the council approved the contract and directed staff to continue work with the consultant and Duke to develop a construction plan and cost estimate. The approved $75,000 is for initial professional services; additional funds for later phases will be proposed in future budgets.

Next steps: The consultant will define a scope and schedule, coordinate requirements with Duke Energy and state/federal regulators, and produce estimates to guide budgeting and a potential financing plan for multi‑year construction.