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NBU budgets $9.13 million for Kohlenberg substation within $19.1 million project

Mayfair-area residents are slated for added electric capacity.

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Blue line illustration of two transformers, utility poles, coiled cable and insulators on cream ground with sparse desert plants.
Illustration: Electric substation equipment and feeder components, shown as a conceptual scene rather than the reported Kohlenberg project.Original editorial illustration; not a photograph and does not depict the reported event or an exact property.Comal.News Visual Desk · Original illustration · Source ↗ · Comal.News original illustration ↗

NBU budgeted $9.13 million in FY2027 for its Kohlenberg substation, but calls the broader substation and feeder buildout a $19.1 million investment. The two figures describe different scopes, a distinction that matters when asking what customers will pay.

NBU says the project will add electric capacity for Mayfair, Overlook at Creekside, Sky Ranch, Aumovio and the Walmart Distribution Center. Its FY2027 capital budget took effect Aug. 1 after board approval June 25. The new station is planned as NBU’s 13th.

Contract labor dominates the FY2027 substation budgetFY2027 budgeted dollars
Source: NBU FY2027–FY2031 Capital Improvement Plan, Kohlenberg project budget.Bars show components of the $9,132,900 FY2027 substation allocation, not the $19.1 million broader project investment.
Map

Where and when

The places and times below come from the official pages linked with each one.

What the substation budget buys

The FY2027 substation allocation is $9,132,900. Its largest component is contract labor, at $6,231,475. Materials account for $1,479,406; overhead, internal labor and engineering make up the rest. NBU’s capital plan initially specifies two transformers and four feeders for the station.

NBU’s FY2027 Kohlenberg substation allocation, by cost component
ComponentFY2027 budget
Contract labor$6,231,475
Materials$1,479,406
Overhead$790,544
Internal labor$481,475
Contract engineering$150,000
Land and easements$0
Total$9,132,900

These are substation budget components, not a breakdown of the $19.1 million substation and feeder project.

The larger number comes from NBU’s Nov. 12 announcement of a $19.1 million Kohlenberg Substation & Feeders Project. NBU says construction began June 22, 2026. The announcement describes an investment in the broader buildout; it does not turn the FY2027 substation allocation into a $19.1 million appropriation.

Who pays, and when?

Here is the financing distinction: NBU’s FY2027 operating plan lists funding for its entire electric capital program, not a Kohlenberg-only financing schedule. It assigns $21.46 million to new debt, $11.866 million to prior debt, $20.392 million to revenue and $4.096 million to contributions in aid of construction and grants. None of those programwide amounts is a household charge for this project.

Funding listed for NBU’s entire FY2027 electric capital program
Funding categoryAmount
New debt$21.460 million
Prior debt$11.866 million
Revenue$20.392 million
Contributions and grants$4.096 million

Programwide amounts should not be assigned to Kohlenberg without a project-specific funding record.

NBU’s capital plan says utility rates primarily fund its operations rather than property taxes. It describes impact fees as a way to fund growth-related water and wastewater infrastructure; that description does not establish an electric impact-fee payment for Kohlenberg. The plan also says NBU’s board reviews rates and the New Braunfels City Council gives final approval. A project budget and a customer bill are therefore two different things.

What changes on the ground

NBU’s FY2027 operating plan counts 12 substations and 64,929 electric meters in FY2026. Its FY2022 plan counted 11 substations and 47,162 meters in FY2021. Those snapshots show a growing system, though they do not measure how much of that growth the Kohlenberg station alone will serve.

The operating plan describes six feeders to be energized within three years, along with a 2.9-mile transmission extension and a later redundant connection. That is a longer buildout than the capital plan’s initial two-transformer, four-feeder description. The number to watch next is how much of the broader work appears in a project-specific contract or revised authorization.

NBU’s capital plan targets July 31, 2027, for the substation; its Nov. 12 announcement expects the broader project to be fully operational in spring 2027. Readers can check the capital plan’s project page against the announcement as NBU posts construction updates and any new contract or rate decision.

Related coverage

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