New electric contract to improve Fort Jackson infrastructure

The Army awarded a subsidiary of Dominion Energy a contract to operate the electric utility system for Fort Jackson, beginning in April 2019.

Improvements in resiliency and reliability are expected. Lowered costs are a future possibility.

The contract was awarded to Dominion Privatization South Carolina, which will own, operate and maintain Fort Jackson's electric system for the 50-year contract period.

The company will acquire Fort Jackson's electric utility assets as part of the Army's plan to sell its utility assets to upgrade on-post systems.

The contract is valued at $142 million.

It will "provide a reliable source of resources to keep the system operating," said Rich Glass, chief of the utilities and energies branch of the operation and maintenance division of the Directorate of Public Works.

Dominion Energy is being incentivized to bring it into the 21st century, Glass added.

A portion of the electric equipment now in use on post has been around for 50-70 years. Some of the equipment in the original substation dates back to the 1940s.

Some antiquated equipment currently in use is "beyond lifecycle," Glass said.

Many parts that would be required for repair are no longer available for purchase. They're outdated.

Such equipment will be replaced with the contract's implementation, Glass said.

"Over the first 5 years of our operations, the Army contract stipulates that we will bring Fort Jackson's system up to 'utility standards'," said Darius Johnson, Dominion Energy's Director of Electric Distribution Design, Project Management & Federal Energy Solutions. "At the end of that time, the customers at the fort will have a more reliable, resilient and sustainable electric distribution system."

Dominion Energy will be financially incentivized to keep the system running.

The less fix-ups required, the better for the company's checkbooks, Glass said.

Relief to Fort Jackson's wallet is a future possibility.

Currently, Fort Jackson operates under a "strange voltage," Glass explained. It is different than what is used by the rest of the Midlands.

Once Dominion Energy makes its planned changes, the installation will switch to the traditional voltage, eliminating the need for a special transformer.

Before a cost reduction will be seen, negotiations will have to take place with SCE&G.

Those discussions are likely a year away, give or take, Glass said.

A more resilient grid, even in the face of storms and hurricanes, will be the more immediate result.

Fewer power outages are expected.

Fort Jackson operates under two substations; locations on post are run by one or the other.

With Dominion's planned advances, if power goes out in one region of the post, power capacity to that area will be rerouted to the alternate substation.

It will allow for line transfer to bring back electrical capabilities, Glass explained.

"Dominion Energy has a proven track record in the electric distribution market. The company owns and operates the largest regulated utility in Virginia with more than 2.6 million customers," Johnson said.

The utility, Dominion Energy Virginia, has more than 57,900 miles of electric distribution lines and more than 6,600 miles of transmission lines.

For those living and working on post, the switch to Dominion Energy should be seamless. "Those living on base will not see any increase in their rates and we have committed to improving the overall reliability of the system," Johnson said.

"We are proud to have been awarded the contract," Johnson added. "But our goal is to be more than just the company operating and maintaining electric power. We want to partner with the Army and be a part of the community. We have a tremendous volunteer ethic across our company, and we intend to lend a hand in lots of educational, civic and social projects."

(Editor's note: Ms. Elyssa Vondra contributed to this report)