Council reviews power impact study and capital facilities plan; directs public notice and power-board review

Hurricane City's council on March 20 received a technical presentation on a new power impact-fee study and an associated capital facilities plan outlining projected system needs over the next 10 years.

Consultants said the engineering load forecast projects approximately 40 megawatts of increased demand by 2033 (described in the presentation as roughly a 6% annual increase), growing the system from about 50'55 MW today to about 90'91 MW in a decade. The capital facilities plan identified upgrades and new infrastructure'including a transformer upgrade at Anticline substation to 20 MVA, two new substations (one in the south near the Romney/Balance Nature/Cordero area and one called Sky Mountain in the north), new transmission lines, and build-out of the partially-operational Three Falls substation. Consultants estimated the total construction cost for the identified projects at roughly $40 million, which was inflated to nearly $50 million for construction-cost timing and then attributed to growth at about $38.6 million for impact-fee calculations.

Fred Philpott (financial consultant) explained how costs are converted into a per-kilowatt figure, producing a proposed fee of about $1,054 per kW. Using that methodology, a typical 200-amp residential panel example in the draft schedule would see a proposed jump in the fee from about $2,595 to $6,000. Philpott emphasized the figures represent the maximum allowable impact fee and noted the council could adopt a lower fee as a policy decision. He also described statutory steps: notice of intent, analysis, public hearing and a 90-day waiting period if the fee is increased.

Council members discussed the assumptions in the forecast (including large industrial loads such as manufacturing and potential data centers, and whether EV infrastructure or AI/data center demand were included) and the need to coordinate with the power board. The council directed staff to post the draft ordinance and impact-fee materials for a public hearing (observing a 10-day notice requirement) and to have the power board consider the draft and return a recommendation before final council action. Staff and consultants advised the study should be reviewed regularly and adjusted as growth and inflationary conditions change.

No final fee adoption occurred at the meeting; councilmembers set a process and schedule for public notice and additional power-board review.