Each year, we establish a budget for our construction work plan (CWP), always aimed at ensuring sustained reliability at the most affordable rates possible. Our 2026 work plan will continue on with the strong work from the past few years, with some adjustments for various new projects in store. Here are some highlights.

New Services
While it’s impossible to know exactly how many new services we will be connecting in a given year, based on actual data from 2025 and the 2023-2026 CWP, we can get an accurate estimate. This year, we expect to connect around 2,800 new underground services and 300 overhead services. Additionally, we can expect to install infrastructure in 39 residential and commercial developments. In the long run, this growth is a positive for our cooperative, as it allows us to spread costs across a larger number of accounts. However, it does create a few challenges, most notably a strain on resources and manpower. That being said, our team has consistently risen to the challenge, and we will do so again this year.

Substation Upgrades
More improvements to our substations are on the horizon for 2026 with many already underway. Upgrades will be made at our Eastern Lake, Mossy Head, and Santa Rosa Beach substations to increase capacity and support future growth in these areas. In addition, complete rebuilds are planned for our Auburn and Freeport substations, further strengthening long-term reliability.

Beyond the substations themselves, we are also enhancing the electric grid with expanded remote operation capabilities. These upgrades will give our operators instant remote access to critical functions, reducing the need for on-site trips by our crews and improving overall system efficiency and response times.

Equipment Replacement
Occasionally, it becomes necessary to replace existing equipment in the field as it ages out of service. This year, we anticipate installing or replacing nearly 1,000 transformers, including overhead and padmounts (the big green box). Additionally, 650 poles will be retired after inspections deemed them near the end of their useful life. These efforts not only keep power reliable, but also ensure the safety of our crews and members, which is always our top priority.

Sectionalizing
Sectionalizing is a process in which various devices are installed at strategic locations, limiting the number of members affected by an outage. In layman’s terms, sectionalizing means breaking the power grid into smaller sections so that when there is a problem in one area, only that section is affected. The fewer members per section, the fewer members per outage. Our crews will be installing devices to improve sectionalizing in 2026 and beyond, an  effort guided by our 2026-2028 strategic plan.

Outdoor Lighting
We have many value-added services at CHELCO, and one of the most popular “extras” that we offer is outdoor and decorative lighting. We anticipate the installation of around 550 decorative lights, mostly in subdivisions and new developments, and 500 standard yard lights. If you’re interested in our outdoor lighting program, visit 
CHELCO.com/lighting or contact our Energy Services Department.

Safety First
Despite the increasing workload, our team continues to prioritize safety, and our streak of nearly 1,500 days without a lost-time injury is evidence of that. Throughout our many work plan items on our 2026 agenda, safety will continue to take precedence.

As CHELCO continues to grow, I appreciate your trust in us to power your life.

Steve Rhodes,
Chief Executive Officer