City Moves Forward with Electric Improvements

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By David Baird, City Manager

 

The City of Milford is moving forward with an $8 million project to add a second interconnection point and second substation to its electric system with the goal of improving operational efficiencies and improving its already strong level of reliability.  The new interconnection will be a joint project between Delmarva Power and the City and will be located just to the south of the DSWA Transfer Station on US 113 while the new substation will be located just off Rt. 14 and constructed by the City.

Along with preliminary design and engineering, the work completed to date has been the acquisition of land at both locations and the siting of one of the transformers for the substation.  Work on the substation will continue over the next couple of months and work on the new interconnection is scheduled to begin in March.  Both the substation and the interconnection are scheduled to be online by October 2012.

In addition to the new substation and interconnection, residents will also see other electric system improvements throughout the City.  A new transmission line will be constructed along US 113 connecting the interconnection to the new substation on Rt. 14.  Also, the addition of the new substation necessitates that additional equipment be added throughout the existing system so City electric crews can operate the system more efficiently.

Funding for the project was made available through $5.5 million in voter approved borrowing and $2.5 million from the City’s electric reserve fund and is not projected to increase user rates.  The bonds sold for this project have an average interest rate of 3.72 percent over a 25.5 year term.

The City has always been very proactive when it comes to the maintenance and expansion of its utility infrastructure and this project is no different.  One of City Council’s top priorities is economic development and a key element to its success is having a reliable, sufficiently sized and competitively priced electric service.  The ongoing improvements to the City’s electric system will not only support the current businesses and residents of the City, but also position the City to be more attractive to our existing businesses looking to expand and in supporting new business opportunities in throughout Milford.

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