Anchorage planning commission approves Chugach substation rebuild over neighbor's objection

Two new transformers will sit less than 25 feet from a Southport home, according to a resident testifying for the adjacent property owners, after the Anchorage Planning and Zoning Commission approved Chugach Electric's Campbell Lake substation rebuild Monday over one neighbor's objection.

The commission passed three separate motions, each subject to the conditions listed in the staff report: a variance reducing planting bed widths on the north, northwest and southwest property lines, a variance allowing the security fence to exceed the 10-foot maximum by six inches, and the conditional use permit itself. The substation at 10000 Southport Drive was built in 1976 and serves about 4,600 properties.

Chugach's planner, Taryn Olson-Yell of R&M Consultants, told the commission the substation's age is now well beyond its useful life. She said rising demand on the system is driving the utility to replace and modernize the site to keep service reliable. The project installs two new transformers for needed redundancy, enclosed on three sides by a concrete barrier for visual and noise buffering.

The rebuild is Chugach's second attempt. Planning Department staffer John Rodda told the commission the Municipal Board of Adjustment remanded the earlier approval after the Southport Masters Association appealed, citing an insufficient community meeting. "Chugach dropped from the project the conditional use request for the telecommunications tower, so there's no tower with this new application," Rodda said. An 11.5-foot block wall was replaced with a 10.5-foot decorative fence.

Janice Zilko, a Southport resident testifying for neighbors Nathan and Taylor Stevens, said the redesign did not fix what matters most to them. "Under this new site plan, two 15-foot-tall transformers would be located immediately adjacent to their property and less than 25 feet from their house," Zilko said. "The transformers and razor wire would extend above the screening fence."

Southport Master Association president Bruce Schulte called the redesign "very much improved" but did not dismiss the objection. "I think that some amount of trees either within Chugach property or on Mr. Stevens' property could solve that problem," Schulte said.

Chugach added six evergreen trees between the two fences. Commissioner Edith McKee said the staff criteria were met and the petitioner made significant efforts with the community.

A party of interest who wants to appeal must first file a written notice of intent with the planning director within seven days of the commission's decision. That party must then file the appeal itself within 20 days after the written findings of fact and decision are approved. Construction is expected to begin in 2028.