Newark plans to build a second electric substation to complement the Kershaw Substation, pictured here.
Newark plans to build a new electric substation on this piece of land at the back of the University of Delaware farm.
Newark plans to build a second electric substation to complement the Kershaw Substation, pictured here.
Newark plans to build a new electric substation on this piece of land at the back of the University of Delaware farm.
Newark officials are gearing up to build a $28 million electric substation to increase the capacity of the city's electric grid.
The project has been in the works for nearly a decade as officials expect to run out of capacity in 2026 due to the growth of the STAR Campus, an increase in electric vehicles and continued development around the city.
Currently, the city's main substation is near Kershaw Park, off Paper Mill Road. It receives electricity from Delmarva Power's transmission lines and distributes it throughout the city.
The project will build another substation on a piece of land at the back of the University of Delaware farm, which the city previously used as a refuse transfer station.
City Manager Tom Coleman said the substation will also increase reliability for customers because it will provide the city a second tie-in to Delmarva's transmission lines, in case there is ever a problem at the Kershaw substation.
“Having a second feed is pretty essential,” Coleman said.
The proposed 2023 budget, which will be voted on by city council in November, calls for spending $12 million on the substation in 2023 and another $15.7 million in 2024.The city has already spent $440,000 on preliminary engineering work.
The project will be funded by a loan from the Delaware Municipal Electric Corporation, which supplies electricity to Newark and other municipalities in Delaware.
Newark electric customers will pay off the loan over time through higher electric rates, though officials have not yet indicated how much rates will increase.
Coleman said he anticipates about half the cost will be paid through increased electric rates, and half will be paid through impact fees charged to developers.
“Assuming that the load comes that we're anticipating, we will sell a lot more electricity, which will help defray the cost of this,” Coleman added.
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