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Bountiful Power Department seeks rate adjustment, plans feeder upgrades and substation rebuild; council awards $3.2M substation contract
Summary
The council heard presentations from power staff about a proposed 3% rate increase and a capital program that includes feeder upgrades and a rebuild of the Northwest Substation. The council awarded Cache Valley Electric a $3,199,644 contract for the Northwest Substation and approved purchase of a flow meter for Pineview Hydro.
The Bountiful City Council received the power department's FY2026 budget presentation and approved major capital procurements tied to an ongoing infrastructure upgrade program.
Power staff reported a proposed FY2026 power budget of about $43.9 million that includes a 3% overall rate increase and a 10% fee increase, effective July 1, 2025. Staff said the department's priorities include upgrading distribution feeders (5-71, 5-73, 5-76), beginning control-system replacements at both hydroelectric plants, and rebuilding the Northwest Substation.
Alan Johnson, the city's power department director, described the Northwest Substation rebuild and the procurement process. He said bids were solicited from three local firms; Cache Valley Electric submitted the lowest responsive bid at $3,199,644. Johnson told the council that while the bid exceeds earlier estimates and will consume contingency, staff recommends proceeding to keep the project on schedule. "This is one of the bigger contracts that we have for the substation... Cache Valley was a low bid at $3,199,644," Johnson said.
The council unanimously approved the contract award to Cache Valley Electric. Council discussion noted the project will be funded from retained earnings (savings) in the power fund and staff warned the council there may be a need to re-open next year's budget to account for tariff impacts and additional bid results for remaining substation work.
Separately, the council approved purchase of an Accusonic flow meter for the Pineview Hydro project at a cost of $82,385 to replace failing ultrasonic flow-measure equipment and improve operational redundancy.
Why it matters: Upgrades to feeders and substations improve electrical reliability, add redundancy, and reduce outage risk. The power department cited longer lead times and higher material costs (wire up ~60%) as drivers for higher project budgets. Staff also reported an average reliability of 0.999 and described recurring outage causes such as wildlife and aging poles and underground cable.
What the council approved: The Cache Valley Electric contract for $3,199,644 for Northwest Substation construction and the Accusonic flow meter purchase for $82,385. The council also discussed a planned 3% rate increase and larger 10% fee increases but took no separate vote on rates at this meeting beyond budget adoption (the budget incorporates the proposed rate changes).
Next steps: Staff will proceed with contract administration for the substation, finalize remaining bids and battery procurements next month, and continue feeder and control-system upgrades as funded in the FY2026 power budget.
