Avangrid Subsidiary RG&E Completes $23 Million Investment in New Substation in Sodus

Rhea-AI Summary

Avangrid's subsidiary RG&E has completed a $23 million investment in a new substation in Sodus, New York, benefiting over 3,300 customers. This upgrade is part of Avangrid's $7 billion statewide investment plan through 2030, adding to its current $8 billion rate base in New York.

The new facility replaces the original 1966 substation, featuring state-of-the-art gas-insulated switch gear technology and an updated control system. The modernization includes voltage conversion capability from 4kV to 12kV circuits, remote monitoring capabilities, and enhanced operational efficiency. These improvements nearly triple the station's capacity, improving reliability and reducing outage response times.

The project, scheduled for completion in Spring 2025, aims to address aging infrastructure and improve grid resiliency to meet growing energy demands and protect against severe weather threats.

Positive

• Significant capacity increase (triple) for power distribution
• $23.1M investment in modern infrastructure
• Part of larger $7B secured investment plan through 2030
• Remote monitoring capabilities reducing response time
• Voltage conversion capability from 4kV to 12kV circuits

Negative

• None.

Insights

Infrastructure Investment Analyst

This $23.1 million substation investment by Avangrid's RG&E subsidiary represents a strategic allocation within the company's broader $7 billion New York infrastructure commitment through 2030. The project's significance extends beyond its immediate operational improvements:

Rate Base Growth Strategy: By adding to its existing $8 billion New York rate base, Avangrid is executing a calculated expansion of its regulated asset portfolio. Utility companies typically earn regulated returns of 9-10% on such rate base investments, providing predictable long-term earnings growth.

Strategic Market Positioning: The timing aligns perfectly with New York's aggressive electrification mandates, positioning Avangrid to capture growing demand while maintaining regulatory goodwill. The tripled capacity and 4kV to 12kV voltage conversion capability creates substantial headroom for future load growth.

Operational Excellence: The modernization introduces state-of-the-art remote monitoring capabilities and gas-insulated switchgear technology, which should reduce operational costs through: 1) Decreased maintenance requirements 2) Improved outage response times 3) Enhanced grid reliability metrics that typically factor into regulatory rate cases.

Financial Implications: While the $23.1 million investment is relatively modest within Avangrid's overall capital plan, it exemplifies the company's systematic approach to deploying capital in regulated projects that offer protected returns. The broader $7 billion investment program through 2030 suggests a steady 4-5% annual rate base growth trajectory, providing visibility into future earnings potential.

Part of Avangrid’s more than $7 billion in investments in New York through 2030 to rebuild substations, transmission lines, to improve resiliency and increase capacity to meet the state’s growing energy demands

SODUS, N.Y.--(BUSINESS WIRE)-- Avangrid subsidiary, Rochester Gas and Electric (RG&E) today announced the completion of upgrades on a new substation in Sodus, New York that will increase reliability and capacity for more than 3,300 residential and commercial customers in Sodus and the surrounding area. The $23 million investment is part of Avangrid and RG&E’s more than $7 billion statewide secured investments through 2030, adding to its current rate base in New York of $8 billion, to modernize critical grid infrastructure projects to meet the growing energy demands of homes and businesses and protect the community against severe weather threats.

“With the need to upgrade and modernize our nation’s energy infrastructure, we are moving aggressively to invest in this critical energy need now,” said Pedro Azagra, CEO of Avangrid. “With these investments locally and statewide, we are delivering on our commitment to rebuild a strong, more reliable grid for our communities.”

“This substation modernization project and related improvements almost triple the capacity of the station for customers in the Sodus area,” said Ricardo Cortes, unit manager for RG&E Substation Projects. “This will improve reliability and resiliency of the area transmission and distribution system, ensuring that the safe and reliable distribution of power is maintained for many years to come.”

“This infrastructure investment by RG&E is critical to the future economic growth of Wayne County and our region,” said New York State Senator Pam Helming. “As New York State continues to mandate conversions to all-electric, these upgrades will help meet the area’s growing energy demands while also improving reliability and resiliency for existing customers.”

“I would like to applaud RG&E for taking the initiative to upgrade the Sodus substation,” said New York Assemblyman Brian Manktelow. “It is truly a great step forward in ensuring that it will be well-equipped to handle the growing demand from the 3,300 customers it serves. Local investments like this are what’s going to help the state meet our green energy goals.”

The original substation and switchgear control house at 10 Green Street had been in place since 1966. The new substation and control house was built at the corner of Green Street and Belden Avenue. A new, more efficient transformer replaced the outdated version. The new control house building contains state-of-the-art gas-insulated switch gear technology and an updated control system. These upgrades provide increased reliability with fewer outages.

“The Village of Sodus is happy to have had the opportunity to work with RG&E to help remove blighted property from our community and to improve our region’s massive infrastructure,” said Village of Sodus Mayor Dan Ingersoll. “RG&E has fulfilled the Village’s requests for a site plan that visually enhances the area.”

The cost of the project was $23.1 million, which includes the capability to convert the existing voltage from 4kV circuits to 12kV. This will help meet the community’s growing energy demands. The modernization allows the Company to remotely monitor and operate the substation 24/7, enhancing electric operations and energy delivery capability, reducing crew response time, and allowing for faster restoration during an outage.

This project, which is scheduled for completion in Spring 2025, is part of RG&E’s investments to address aging infrastructure and improve the overall resiliency of the energy grid, meeting today’s challenges to better prepare for those of tomorrow.

About RG&E: Rochester Gas and Electric Corporation (RG&E) is a subsidiary of Avangrid, Inc. Established in 1848, RG&E operates approximately 8,800 miles of electric distribution lines and 1,100 miles of electric transmission lines. It also operates approximately 10,600 miles of natural gas distribution pipelines and 105 miles of gas transmission pipelines. It serves approximately 378,500 electricity customers and 313,000 natural gas customers in a nine-county region in New York surrounding the City of Rochester. For more information, visit www.rge.com.

About Avangrid: Avangrid, Inc. aspires to be the leading sustainable energy company in the United States. Headquartered in Orange, CT with approximately $47 billion in assets and operations in 24 U.S. states, Avangrid has two primary lines of business: networks and renewables. Through its networks business, Avangrid owns and operates eight electric and natural gas utilities, serving more than 3.3 million customers in New York and New England. Through its renewables business, Avangrid owns and operates a portfolio of renewable energy generation facilities across the United States. Avangrid employs approximately 8,000 people and has been recognized by JUST Capital as one of the JUST 100 companies – a ranking of America’s best corporate citizens – in 2024 for the fourth consecutive year. In 2024, Avangrid ranked first among utilities and 12 overall. The company supports the U.N.’s Sustainable Development Goals and was named among the World’s Most Ethical Companies in 2024 for the sixth consecutive year by the Ethisphere Institute. Avangrid is a member of the group of companies controlled by Iberdrola, S.A. For more information, visit www.avangrid.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20250130277426/en/

Media Contact:

Alexis Arnold

alexis.arnold@avangrid.com

585.953.3159

Source: AVANGRID

FAQ

What is the total cost of AGR's new Sodus substation investment?

The total cost of the Sodus substation investment is $23.1 million.

How many customers will benefit from AGR's Sodus substation upgrade?

The substation upgrade will benefit more than 3,300 residential and commercial customers in Sodus and surrounding areas.

What is AGR's total planned investment in New York through 2030?

Avangrid (AGR) plans to invest more than $7 billion in New York through 2030 to modernize grid infrastructure.

When will AGR complete the Sodus substation project?

The Sodus substation project is scheduled for completion in Spring 2025.

What technological improvements are included in AGR's new Sodus substation?

The new substation includes state-of-the-art gas-insulated switch gear technology, updated control systems, remote monitoring capabilities, and voltage conversion from 4kV to 12kV circuits.