The Rancho Mirage City Council on Dec. 4 authorized the city’s participation in a regional funding and capacity reservation agreement for the IID Cook Street substation, a step staff described as critical to three approved affordable housing projects slated for the city.

Staff said the Coachella Valley has experienced rapid growth and existing IID substations were at capacity, creating a barrier for developers seeking power service. The city had originally planned for roughly 15 MW of capacity but a reconfiguration reduced transformer size; Rancho Mirage’s current allocation dropped to about 10 MW. The IID board agreed to participate at an 18% rate, which staff characterized as roughly a $7.5 million contribution from IID and reduced the city’s share to an estimated $5.6 million.

City staff asked the council to (1) approve the funding and reservation agreement for the Cook Street Substation and authorize the city manager (or designee) to execute the agreement subject to final revisions, and (2) authorize the city manager to negotiate and execute an amendment reserving up to an additional 5,000 kilowatts (≈5 MW) of capacity on substantially the same terms at an estimated additional cost of $3.2 million if capacity becomes available. The authorization would allow staff and the city attorney to adjust the agreement if another participant declines so that the city could return to an original target of 15 MW.

Council discussion emphasized the project’s importance to enabling the three affordable housing developments (roughly 700 multifamily units combined) and thanked IID for its participation and flexibility. The council voted 5–0 to approve the agreement and the contingency authorization.

The agreement establishes payment timing, participants’ shares and a framework for reallocating capacity should a participant opt out. Staff said further contract details and procurement actions for long‑lead equipment will follow as the project proceeds.