Developers in Kelowna are being warned they may have to pause or push developments as FortisBC cannot guarantee electricity for new projects.
A spokesperson for the utility company said the guarantees can’t be made as equipment delays are slowing substation upgrades.
Gary Toft said this is because power providers across North America are all attempting to expand grid capacity at the same time.
"A transformer for a substation that once took one year could now be seeing up to three years for delivery," he said. "We have taken action to help mitigate delays wherever possible, including purchasing and pre-ordering these key materials and equipment."
Work on the downtown substation won’t be done until at least 2027. Three other substations in the city are also set for upgrades in the next three years, he said.
This will impact two key growth areas in the city: the North End and Pandosy Village.
Some builders have been told they may not have power for their new buildings from 2027 to 2029.
City Manager Doug Gilcrest expressed concern over both the immediate and long-term impacts of the situation. While smaller infill projects are likely to proceed without issue, he said larger developments with more than 40 units could face significant challenges.
And while it may take two to three years to construct those project, developers warn this will stymie investment.
"They can’t invest in a building or perhaps get financing and investors if there aren’t guarantees around those timelines," he said.
With the province’s mandated housing targets under Bill C-44, Gilcrest emphasized the importance of collaboration to ensure FortisBC makes the necessary investments to support the grid and enable sustainable development.
Gilcrest refrained from placing undue blame on FortisBC, acknowledging their longstanding role as a rural power provider and recognizing Kelowna as their largest customer.
Toft said the utility is working closely with the city and builders to ensure large buildings can be connected as quickly as possible.
