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Power department details aging poles, underground cable and substation needs as council considers rate changes
Summary
Bountiful Power Department described rising material costs, pole decay, underground bare‑concentric cable replacement needs and a multi‑million dollar substation rebuild during a June 10 presentation tied to the proposed FY26 budget and a 3% rate increase proposal.
The Bountiful Power Department on June 10 presented infrastructure priorities and a proposed FY26 operating budget tied to a recommended 3% rate increase (and a separate 10% fee increase) as part of the broader budget hearings.
Department staff described the power operation as a mix of generation and distribution assets, including three natural‑gas turbines at the city power plant, six substations, roughly 42 miles of 46 kV transmission line, 225 miles of distribution circuits (90 miles overhead and 135 miles underground), and 75 miles of streetlight circuitry. The department said the proposed FY26 power budget is approximately $43.9 million, with a requested 3% rate increase effective July 1 and a proposed pole‑attachment fee increase from $14 to $15.
Staff presented several drivers for increased capital spending and rates: supply‑chain issues and step‑function price increases for materials (wire up more than 60% and other components significantly higher), an inventory of decayed wooden poles and the large installed base of older underground “bare concentric” cable installed in conduit between about 1970 and 1986 that has a practical life well beyond original expectations but requires replacement. Presenters showed photos of poles with internal decay and cellphone‑video shots of outage restorations; staff said Osmos testing five years earlier documented 265 rejected poles and that, to date, roughly 127 of those have been replaced. At current replacement rates (about 127 poles per year historically), staff said it would take decades to finish the inventory of older poles and to replace unjacketed underground cable at current staffing and funding levels.
Capital items listed in the department’s 10‑year plan include a Northwest Substation rebuild (budgeted in the meeting at over $5 million for the northwest project and an overall 10‑year capital program at roughly $45 million in today’s dollars), feeder upgrades, hydro control system replacements and replacement of the number‑one turbine at the power plant. Staff also compared typical customer bills and said that, after the proposed 3% increase (and accounting for a recent 4.7% Rocky Mountain Power increase), the average Bountiful customer would still pay about 2.6% less annually than if they were served by Rocky Mountain Power when all schedules are included; presenters cautioned the comparison is not strictly apples to apples because other utilities have different surcharge schedules.
Discussion vs. decision: Department staff presented proposed rates, capital needs and operational challenges for public comment. The council did not adopt rates June 10; the hearing on rates and budget will continue June 24.
