PUD approves $2.1 million Malaga land purchase for future substation

WENATCHEE — Chelan County PUD commissioners unanimously approved the purchase of 8.15 acres in Malaga for $2.1 million Sept. 21, securing a potential site for a substation the utility expects to need as the area grows.

The property, near Malaga-Alcoa Highway and Stemilt Creek Road, is owned by Water Works Properties LLC. Four transmission lines cross the site, distribution infrastructure is nearby and its relatively flat terrain could accommodate a substation, PUD staff told commissioners during an earlier presentation.

The purchase does not authorize substation construction or set a building schedule. At the commission’s Sept. 8 meeting, Chad Rissman, the PUD’s director of distribution asset management, said the existing Malaga substation was at 71% capacity. The utility generally begins planning additional capacity when a station approaches 80%, and Rissman estimated a new one could be needed within five to 10 years, depending on development.

Rissman reiterated Sept. 21 that the site is intended to serve expected local demand, including homes, irrigation and light commercial activity. PUD officials have emphasized the distinction from the large electrical loads associated with data centers, which have drawn considerable attention in Malaga.

The $2.1 million purchase price exceeds a $1.765 million appraisal. Staff said one reason is the way the appraisal treated a 300-foot transmission easement across the property. Land beneath those lines would be less useful to many buyers, but the existing corridor and nearby electrical infrastructure make the parcel particularly useful to the PUD. Its road frontage would also provide access for large equipment.

Commission President Kelly Allen asked Monday whether staff had heard concerns from the community. Rissman said the PUD had sent targeted mailers and presented the proposal at public meetings. The primary questions concerned what kind of growth the future substation would serve.

The PUD entered into a purchase and sale agreement with the property owner in June, subject to commission approval. Staff said cultural and geotechnical reviews found no concerns that would prevent the purchase. Monday’s vote authorizes the utility to complete the transaction under that agreement.

Andrew Simpson: 509-433-7626 or andrew@ward.media