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Power board advances revised impact-fee capital plan after developer concerns; plan shows 73% coverage of projected growth
Summary
Hurricane City Power Board reviewed a revised impact-fee and capital facilities plan that staff said will add roughly 54–54.5 MW of capacity over the planning horizon and yield a 73% capacity-to-demand ratio under projected growth.
Hurricane City Power Board reviewed an updated capital facilities and impact-fee plan that staff will present to City Council next week, including an updated project list and revised percentage allocations intended to address concerns raised by the local homebuilders association.
Staff said the projects in the revised plan will add roughly 54–54.5 megawatts of generation or delivery capacity through the study period (to 2033) and that staff calculated a projected demand increase of about 40 megawatts through the same horizon; that yields a capacity-to-demand share of about 73 percent under the revised plan. Staff told the board the new plan trims some 10‑year projects from the original package and reduced some percentages, which staff estimated would lower the previously proposed impact fees by about 25 percent compared with the original draft.
Board members asked about the utility’s target reserve of operating capacity; staff replied the department typically plans to hold roughly 75% of rated capacity as a working threshold to avoid operating near thermal or breaker limits. Members also asked whether the plan should include an additional substation or change phasing; staff said the plan includes build-out for several substations (including a ‘future substation 1’ and Sky Mountain) and that impact fees can be used for substations already listed in the capital plan.
Staff emphasized that the revised plan will go to City Council for formal approval; once the council approves an impact-fee schedule, the fee will require a 90‑day implementation window before collection begins. The board asked staff to include the revised per-service fees in the council packet; staff said they had sent a revised table but were still awaiting the full council packet materials from the consultant (ICP/ICPE referenced in discussion).
Ending: Staff will forward the revised impact-fee capital facilities plan to City Council and return with a full packet of per-service fee tables and the consultant’s final recommendations prior to the council hearing.
