Electric Substation Closer To Reality

City of Milford’s current electric substation on Elks Lodge Road.

On Tuesday, August 20 the City of Milford took one step closer to the construction of the new electric interconnection located just to the south of the DSWA Transfer Station on US 113 by annexing the necessary property to construct the interconnection point from Delmarva Power. The property, located on South DuPont Blvd, consisting of 3.23 acres was originally zoned AR-1 (Agricultural) but as necessary for the new interconnection, the City plans to rezone the property as C-3 after it is annexed into the City of Milford.

A new transmission line will be constructed along US 113 connecting the interconnection to the new substation on Rt. 14 that is said to be constructed by 2013.  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. The purpose of the $8 million project is to add a second interconnection point and second substation to the City of Milford’s electric system with the goal of improving operational efficiencies.

“Some of those days this summer when it was very hot out, the City was very close to capacity,” stated City Manager Richard Carmean. “If we were to lose a transformer we could be in trouble. The addition of the substation will give us a larger supply of electric, having additional load capacity, and allow us to loop the entire system so that the system is more reliable.”

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.

Staying in line with the City’s focus on preparing for new business opportunities, 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 new business from across the country.

“Being in this same office during the boom years in Milford, from 2003-2005, I get the feeling that things are going to start happening,” commented Mr. Carmean. “Things are starting to begin with housing, business and retail and we will be prepared.”

The City is also in talks with a solar power company to build new solar field that will connect to the substation. This will allow the City to meet State of Delaware mandates for alternative energy usage and should save the City overall costs. City officials are hoping to begin the project in 2013.