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Bountiful approves $3.2M Cache Valley Electric bid for Northwest substation; power department proposes 3% rate increase
Summary
The council approved a $3,199,644 contract award to Cache Valley Electric for rebuilding the Northwest substation and approved a separate purchase for a hydro flow meter; the power department outlined a multi-year capital plan and proposed a 3% rate increase and fee increases starting July 1.
The Bountiful City Council unanimously approved a $3,199,644 bid from Cache Valley Electric on June 24 to rebuild the Northwest electrical substation near Viewmont, and separately approved the purchase of a replacement ultrasonic flow meter for the Pineview hydroelectric installation for $82,385.
Alan Johnson, Bountiful's power department director, said the Northwest substation project is one of the city's largest upcoming contracts and will involve concrete, rebar and specialized substation labor. Johnson told the council that several major pieces of equipment have already been ordered and that tariffs and rising construction costs could require a budget reopening next year; he said the purchase would be funded from the power retained earnings (savings) if necessary. "This is one of the bigger contracts that we have for the substation," Johnson said as staff described procurement and schedule details.
The council also approved a $82,385 procurement from Accusonic for a back-up ultrasonic flow meter at the Pineview hydroelectric site. Staff said the new meter matches existing devices and is needed for redundancy after a recent failure of a backup unit.
Power-department presentation and proposed rate changes: Tyrone (power department staff) reported the power department's FY2026 proposed budget of $43.9 million includes a 3% overall rate increase and a 10% increase to department fees, both effective July 1, 2025. The department also proposed raising pole-attachment fees from $14 to $15 and described a 10-year capital plan exceeding $45 million that includes substation rebuilds, feeder upgrades and control-system replacements at hydroelectric facilities.
Infrastructure priorities explained: Luke (power staff) outlined planned feeder upgrades that will add redundancy to distribution circuits and described ongoing pole replacements and underground cable replacements. The power department noted aging infrastructure: many poles are near or past useful life, and older bare-concentric underground cables—some installed in the 1970s and '80s—require replacement. Department staff said those replacement programs take years and substantial funding; at current replacement rates, full system replacement would take multiple decades.
Why it matters: The Northwest substation and distribution upgrades are intended to improve reliability, add redundancy and reduce outage risk. Staff said recent outages have been driven by weather, wildlife (squirrel-related outages were discussed) and construction in rights-of-way; the department reported strong safety performance and an average reliability of about 99.9%.
Council action: Following staff presentations and questions about budgeting and contingencies, the council moved, seconded and approved the Cache Valley Electric contract and the Accusonic meter purchase by voice vote. No council member recorded a dissent. Staff said the substation contract award will deplete some project contingency and that future bids for steel and batteries could require additional budget actions.
Next steps: Power staff will proceed with the contract and schedule for the Northwest substation rebuild, continue ordering long-lead equipment, and return to council as needed if additional budget amendments are required.
