M.I. utility receives $3 million loan

M.I. utility receives $3 million loan
By JESSICA A. YORK/Times-Herald staff writer
Posted: 01/22/2009

Mare Island's energy needs may increase exponentially one day, and the island's Pittsburg-based power company plans to be prepared.

On Tuesday night, the Pittsburg Power Company, comprised of members of the Pittsburg City Council, agreed to lend energy provider Island Energy on Mare Island $3 million to upgrade its equipment.

While the island's current primary power transformer is sufficiently serving energy needs, planned development -- particularly Touro University's upcoming cancer treatment center -- may require higher capacity machinery, according to Pittsburg city staff reports.

Also, the power company needs a backup transformer to replace one that went out of service last year.

With the approved loan, the company plans to move an idle transformer from elsewhere on the island into the primary substation within the next four months, said Pittsburg Power's general manager, Garrett Evans.

The loan will be repaid through customers' regular energy rates, which are not expected to be raised to cover costs, Evans said.

"The loan repayment would be worked into existing rates -- not as an add-on item," Evans said. "We would carry it out in probably 30 or 40 years."

The funds are expected to cover the replacement of one of two major island power substations, containing more than 40-year-old equipment, according to city staff reports.

Contact Jessica A. York at 553-6834 or at jyork@thnewsnet.com