Chelan PUD plans new substation, upgrades in Leavenworth

LEAVENWORTH — This year, Chelan County PUD plans to take significant steps toward upgrading Leavenworth’s electrical power grid as it confronts aging infrastructure and increasing demand.

The PUD expects to begin construction on a second facility, the Bavarian Substation, while also replacing the aging Leavenworth Substation, the city’s current and only substation.

Chelan PUD officials said the Leavenworth Substation’s aging equipment is nearing the end of its useful life, and cannot be repaired or replaced. Transformers at the current Leavenworth Substation have been in service for more than 30 years, with some key components approaching 40 and 50 years old.  

“Much of the equipment is obsolete or one-of-a-kind, making replacement parts difficult or impossible to obtain. Due to these conditions and limited parts availability, continued repair is not considered reliable or cost-effective,” said Chelan PUD Communications Manager Libby Siebens.

The utility has proposed building a new substation adjacent to the existing station, then decommissioning and removing the old substation. Chelan PUD is in the process of performing surveys and studies on the property to support environmental requirements, and has already submitted a Conditional Use Permit (CUP) application to the city.

While the Leavenworth Substation Rebuild will address aging infrastructure, the addition of the Bavarian Substation aims to increase capacity. The PUD uses an 80/20 Model to determine the need for an additional substation. When an existing substation is consistently reaching 80 percent capacity, the utility says it begins planning for a new facility and related transmission lines. In the meantime, the 20 percent buffer allows the utility to meet growing electric usage from electric vehicles, houses, businesses, and apartments while providing time to add additional capacity to the electric system, said Siebens. Without that buffer, the substation risks accelerated equipment failure and service interruptions.

“Running equipment at or over capacity causes excess wear and tear on the components, decreasing their lifespan and reliability,” said Siebens.

While the Leavenworth Substation typically operates within standard capacity, winter demand peaks can reach 100 percent on some feeders, according to Siebens. The highest recorded peak on the Leavenworth Substation occurred over Martin Luther King Jr. weekend in January 2024. One transformer peaked at 118 percent, and the other at 98 percent.

The PUD has been working with the community to construct a new substation since 2015, selecting a site near the intersection of North Road and Chumstick Highway in spring 2017. After years of planning, permitting and site preparation, the project is now moving into the construction phase, with completion projected between 2026 and 2027, according to Chelan PUD’s website.

“Chelan PUD is acting proactively to maintain reliable electric service and address increasing load in the Leavenworth area. Moving forward now allows the District to improve reliability, reduce safety risks, and align the system with modern operational standards before failures occur,” said Siebens.

Approximately 30 percent of the existing load on Leavenworth Substation will be moved to Bavarian, said Siebens. This wider distribution not only decreases pressure and wear on a single facility, but can provide backup power during an outage. Additionally, the upgrades will improve power system resilience “by installing modern transformers, switchgear, updated protection and control systems and SCADA capability, as well as increasing capacity and redundancy.”

The utility projects the construction cost estimate of the Bavarian Substation, which will be a double bank with only one transformer, is approximately $15 million. While final cost estimates are still being refined as design advances for the Leavenworth Substation rebuild, Siebens estimated the project, which would be a double bank with two transformers, will cost approximately $23 million.

According to Siebens, rate increases have not been proposed to fund the projects. Instead, construction of both substations will be paid for using funds generated by Chelan PUD’s System Impact Fee, a fee charged to new customers connecting to the system. 

Chelan PUD’s CUP application for the Leavenworth Substation Rebuild project is currently undergoing a planning review by the City of Leavenworth’s Community Development Department. Members of the public will have the opportunity to provide comment during a public hearing on April 7. Chelan PUD said it was open to feedback on aesthetic elements of the substation and surrounding area, including fencing, lighting, and landscaping.

The public hearing will be held at 1 p.m. at the Leavenworth Council Chambers, with an option to attend remotely via Zoom Webinar. The PUD’s permit application, labeled LUA2025-062/LUA2025-067, can be reviewed on the City’s permit portal.

“We appreciate Chelan PUD for their ongoing infrastructure investments to ensure reliable electrical service for the Leavenworth community,” said Leavenworth spokesperson Kara Raftery.

As part of the draft Utilities Element of the City’s ongoing 2026 Comprehensive Plan update, Raftery said Chelan PUD’s 2025 Integrated Resource Plan would be adopted.

Taylor Caldwell: 509-433-7276 or taylor@ward.media