Electric director warns of aging substations, proposes rate study and prioritizes projects

Dave Cross, Oak Ridge electric department director, told council the city's electric infrastructure includes substations and equipment dating to the 1960s and earlier and that prioritized upgrades are needed to improve reliability.

Cross said the city is working with Patterson Dua Engineers to assess substations and identify highest-priority replacements. He described conductor and pole replacement as a multi-year effort that will require planned outages and noted vegetation management is part of reliability work. The department plans a systematic replacement and will pair engineering assessments with a financial plan.

Cross said the city is below desired cash reserve levels and that the short-term financing approved in the special session will help bridge near-term needs. He announced the city will bring a rate study from Chris Mitchell and Associates to council and the finance committee; staff said the Thomas Valley Authority regulatory review will influence final timing and needed rate adjustments. Cross provided an estimated interest figure (about 2%) for short-term debt and discussed annual debt-service implications, but the transcript contains ambiguous debt-service numbers staff said they will clarify with a detailed amortization schedule submitted to the finance committee.

Council members asked about procurement and the use of familiar engineering partners; Cross said engineering firms would provide assessment and project prioritization but would not perform construction work directly. Staff committed to returning with a comprehensive plan that pairs engineering priorities with a financial schedule.