Indio, IID complete major substation expansion to support city’s growing energy needs

Raymond Kalra

INDIO, Calif. (KESQ) – A major electrical infrastructure project is now complete in Indio, adding enough power capacity to serve the equivalent of approximately 2,500 homes as city leaders prepare for continued residential and commercial growth.

The Imperial Irrigation District (IID) and the City of Indio celebrated the completion of the Avenue 42 Substation Expansion on Tuesday, marking the first of four major electrical infrastructure projects planned through a partnership between the utility and the city.

The $25 million expansion includes a third 28-megavolt-ampere transformer bank, increasing the substation’s capacity to accommodate future development and growing electricity demand.

City officials say the investment will help attract new businesses, support additional housing and create opportunities for more jobs. But as Indio continues to grow, some residents are questioning how the city will balance that development with reliable and affordable electricity.

Reliable electricity essential for growing businesses

For businesses preparing to open in Indio, a dependable power supply is critical.

At The Station, a new restaurant under development, Executive Chef Taaj Brown says electricity is essential to everyday operations, particularly when it comes to refrigeration and food safety.

“We’re worried about our food, especially with these coolers,” Brown said.

Brown explained that a power outage could create financial consequences for the restaurant before it even has a chance to establish itself in the community.

“We handle food here. So, you know, we can’t have power outages and stuff like that as we lose food,” Brown said.

The restaurant is among the businesses preparing to become part of Indio’s growing commercial landscape.

For Brown, the expansion represents an investment in the infrastructure businesses will depend on as more development comes to the city.

Residents question how growth will affect electricity costs

While city leaders are celebrating the additional electrical capacity, some longtime residents want to ensure that existing customers are not overlooked as Indio expands.

Indio resident Tonalea Dody says she supports infrastructure improvements but believes the city needs to take a balanced approach to development.

“I think the city needs to consider a balanced growth, not just go for the developer’s dollars, but consider the citizens who are currently here,” Dody said.

Affordability is among her biggest concerns.

Dody says her average monthly electricity bill has doubled over the past 23 years, increasing from approximately $90 when she purchased her current home to about $180 today.

“That’s the increase over 23 years,” Dody said.

The comparison reflects Dody’s personal electricity expenses over more than two decades and does not establish that the new substation expansion caused her bills to increase.

Despite those concerns, Dody says she has had positive experiences with IID’s service. She described the utility as dependable and said she has never experienced a power outage at her Indio home.

Still, she worries that continued housing construction, commercial development and growing electricity demand could place additional pressure on the region’s infrastructure.

Mayor says expansion is necessary to prevent strain on the power grid

Indio Mayor Elaine Holmes says expanding electrical infrastructure is necessary to support future development without overburdening the existing system.

“Because we can’t put additional strain and we won’t because it needs to be reliable. Whatever we do here in the city of Indio, power or anything else, it has to be reliable,” Holmes said.

Holmes emphasized that the project is about more than adding electrical capacity. She said it will help the city pursue economic development opportunities, including attracting major businesses and supporting new employment.

“This is all about economic growth. This is all about our future. These are all about future businesses,” Holmes said.

The mayor also pointed to IID’s comparatively affordable electricity service as an advantage for residents and businesses.

However, her comments did not amount to a guarantee that customers’ future electricity bills would remain unchanged.

How much is the expansion costing customers?

IID Board Chairwoman Karin Eugenio says the Avenue 42 Substation Expansion cost approximately $25 million.

The project is part of a broader infrastructure partnership between IID and the City of Indio, established through a Joint Powers Authority arrangement.

According to Eugenio, Indio electricity customers are already paying a small surcharge to help fund infrastructure improvements under that partnership.

“It’s about 2 or $3 per household that JPA ensures that the base rate stays the same,” Eugenio said.

Eugenio explained that the arrangement is intended to help Indio fund infrastructure needed for its growth without shifting those costs to IID customers in the Imperial Valley.

She described the financial impact on Indio households as relatively small compared with the economic development the improvements could support.

The surcharge is separate from customers’ overall electricity expenses. Its existence does not guarantee that individual electric bills will remain unchanged, since total costs can also depend on electricity usage, rate schedules and other charges.

The billing frequency of the approximately $2 to $3 household surcharge was not established in the interview.

How do IID electricity rates compare with Southern California Edison?

Electricity affordability remains an important issue across the Coachella Valley, where high summer temperatures can significantly increase household energy use.

IID and Southern California Edison (SCE) serve different portions of the valley, and their electricity rates are structured differently.

Published 2026 figures identify IID’s residential base energy rate at approximately 22.30 cents per kilowatt-hour, compared with an SCE average residential rate of approximately 34.5 cents per kilowatt-hour.

That represents a numerical difference of about 12.2 cents per kilowatt-hour.

However, the figures are not directly equivalent: IID’s figure is a base energy rate, while SCE’s represents an average residential rate. Additional charges, rate plans and individual electricity consumption can affect what customers ultimately pay.

The comparison should therefore not be interpreted as a guaranteed difference in monthly household bills.

Three additional electrical projects planned across Indio

The Avenue 42 expansion is only the first of four major electrical infrastructure projects planned through the partnership between IID and the City of Indio.

The three additional projects include:

Avenue 40 Substation: Construction of a new electrical substation to provide additional capacity for future development. Dr. Carreon Substation: Expansion of the existing substation to accommodate increasing electricity demand. Northgate/Avenue 43 Substation: Construction of another new substation to support continued growth in the city.

Together, all four projects are expected to add approximately 156 megavolt-amperes of electrical capacity.

According to city and utility officials, that is equivalent to the electricity capacity needed to serve approximately 16,000 homes.

That figure represents an estimate of added electrical capacity, not a confirmed number of new homes approved or under construction.

IID officials say another project is nearing completion, while the remaining improvements are expected to move forward over the next several years.

Balancing growth, reliability and affordability

As Indio continues to attract development, the completion of the Avenue 42 expansion represents a significant step toward increasing the city’s electrical capacity.

For business owners like Brown, reliable electricity means protecting inventory and avoiding costly interruptions.

For longtime residents like Dody, the challenge is ensuring that the city’s growth does not come at the expense of the people already living there.

And for city and utility leaders, the focus is on building enough infrastructure to support new homes and businesses while managing the financial impact on customers.

With three additional projects still planned, questions about the cost of those investments and their impact on future electricity bills are likely to remain part of the conversation as Indio grows.

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