By Ken Jackson
Staff Writer

As part of its recently-approved fiscal year 2013 budget, the Kissimmee Utility Authority board of directors has approved the construction of a new $17.2 million electric substation to serve the downtown Kissimmee business district.

The new substation will replace the utility’s existing 40-year-old substation that currently overlooks Kissimmee Lakefront Park. Construction of the new facility will coincide with the decommissioning of the Roy E. Hansel Generating Station on Ruby Street. The dismantling of the old facility will begin immediately after Sept. 30, its final day of operation.

“We’re looking into selling parts from the old building, in order to defray the cost of its demolition,” KUA spokesperson Chris Gent said.

The new substation will be built adjacent to the existing KUA facility on Lakeshore Boulevard. Much of the new sulfur hexafluoride gas-insulated design and its supporting equipment are slated to be housed inside a supporting building to minimize the visual impact and reduce exposure to animal life that tend to migrate across Lakeshore Boulevard and nest behind at the current facility.

Unlike the outside design of the current substation, existing transmission lines and distribution feeders will enter the substation underground to further improve aesthetics, Gent said.

“It will be set back closer to the railroad tracks, which will be good when you think what people will see from Lakefront Park and the future Sunrail station,” he said.

The new facility is part of the $21 million construction budget. The KUA budget for 2013, approved Aug. 3 following a workshop and a public hearing, is $220 million. The budget is $9 million (4 percent) less than the 2012 budget, marking the eighth consecutive year the base utility rate has remained stable. The utility’s last base rate increase was in July of 2005.

A 3 percent cost of living increase for the KUA’s 305 employees is factored in, bringing payroll to $31 million.

Other highlights include $119 million for fuel and power purchases and $19 million in transferred electric sales and taxes to the city of Kissimmee and Osceola County.

The budget was drawn up to keep pace with expectations of 2.3 percent customer growth and a 2.9 percent increase in energy sales.

“It was another challenging budget year, but we are pleased to have found ways to avoid raising rates while preserving excellent system reliability and service for our customers,” KUA president and general manager Jim Welsh said in a KUA press release.

The new budget, takes effect Oct. 1. Gent said the budget would be amended if changes to the new substation plans are necessary.