Chelan County PUD is moving forward with construction of a new power substation on the North Shore of Lake Chelan.

PUD commissioners are considering the final contracting step for the project, as well as a boost to its overall budget.

Project Manager Gary Rice says more money is needed because the price of building a substation is on the rise.

"We've been tracking through our consultants the cost of construction for substations, and it's been going up due to recent competition for construction orders, and the cost of materials that go into that construction," said Rice. "That's the biggest one."

The cost to complete the project has risen by $2.6 million to $9.4 million.

It includes the electrical equipment that'll be housed in the new substation, which is already being constructed and has been paid for.

Among other things, the substation will feature a low noise transformer, which increased its cost by about $100,000, but was requested by nearby residents.

The new substation is needed to support long term growth in the Chelan and Manson areas.

"This is a sizable project, but it's a distinct project to serve the Lake Chelan area," Rice said.

Chelan PUD says it's been working closely with the community since 2015 to construct a new substation on the Lake Chelan north shore between Chelan and Manson.

There are two existing substations serving that area, Union Valley and Wapato, and they're nearing capacity.

In November 2017, the PUD, used guidance from public comment, to select a site off Henderson Road for the new substation.

The PUD submitted a Conditional Use Permit application with Chelan County in late May, which opened up the process of approval for a substation to be built on the property.

The PUD plans to send out the project for bid in October and November.

Major construction is set to begin in March of 2023.

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