Small utilities can do big things to enable responsible growth, but it takes persistence and partners to make it happen. The U.S. Census Bureau shows that Mason County, Washington, is one of the fastest-growing micro areas in the nation. In years past, however, Mason PUD 3 could not meet the demands for large single electrical loads in the short timelines requested by proposed development opportunities. Barely squeaking into the Top 100 American Public Power Association utilities by meter count, Mason PUD 3 is working hard to implement creative solutions to balance industrial site readiness so its community can say “Yes!” to new development by building infrastructure now that may not be fully utilized for years to come.
The projects
Since 2019, Mason PUD 3 has taken steps toward expanding capacity across Belfair and northern Mason County, opening up possibilities for new industrial and commercial growth that previously would not have been possible. The Belfair electrical upgrade projects began with a request to Bonneville Power Administration to add a new tap to the BPA transmission line for a future substation. The answer came back in so many words: “No new taps.”
Instead, PUD 3 took the opportunity to combine an electrical capacity project with a deferred reliability project: The construction of a new 115-kV switching station in a ring bus formation would modify the existing BPA transmission tap to allow not only additional circuits toward future substations but also modernize system protection to avoid outages which impact thousands of customers on multiple substations. Before it could be built, though, there were several phases to work through.
The site of the new switching station is adjacent to the main substation feeding Belfair and Allyn, and it used to be the site of PUD 3’s satellite office and warehouse. Located right along Highway 3, it was neither the safest nor most convenient location for drivers. So, PUD 3 moved its customer service functions to a more convenient, safer location with slower traffic in Belfair and its line crew functions to its main operations center. Then the big work began.
In 2024, the old office and warehouse were demolished, clearing the way for future construction. In 2025, the Belfair substation’s 1967 power transformer was replaced, retiring the oldest transformer in the PUD’s fleet and doubling available capacity. The nearby Union River Substation received a new feeder upgrade and extension to serve what PUD 3 calls “bridge capacity.” This feeder upgrade project brought at least 8 MW into a greenfield site for use by light industrial, medium commercial, or dense residential development. This allows the PUD to say “yes” to development in the short-term while it builds the large-scale infrastructure to meet long-term needs.
PUD 3 held a ribbon cutting on the Belfair substation upgrade and ground-breaking ceremony for the switching station on the same day, inviting local dignitaries and partners to check out the site and get updates on the multiphase project.
In 2026, the new Belfair switching station was completed. PUD 3 now has two additional 115-kV tap points for future transmission and substations in the Belfair urban growth area to the north, and the Allyn urban growth area to the south. Transmission rights of way have also been secured to reduce deployment timelines. With these transmission tap points standing at the ready on infrastructure owned and operated by the PUD, the utility can confidently provide large-scale developers a realistic and reasonable timeline for siting new substations to meet their large-load needs. PUD 3 is also better positioned to build infrastructure to meet organic load growth as the bridge capacity is utilized.
In partnership with the massive Washington State Department of Transportation state Route 3 freight corridor project, PUD 3 can construct a new high-capacity distribution feeder and future transmission line to serve a future substation in the largely undeveloped area on the ridgeline above Belfair, adding another large dose of capacity when it is needed.
“These upgrades represent more than just infrastructure improvements—they’re a commitment to the future of North Mason County,” PUD 3 CEO Annette Creekpaum said. “These investments ensure that as our communities grow, we’re ready to deliver safe, reliable, and resilient power.”
The funding
The big questions anyone asks when talking about such huge infrastructure projects are “How much did that cost?” and “How did you pay for it?” The total cost of all the projects, including the yet-to-come transmission line and substation above Belfair, will exceed the $20 million mark, using a variety of financial sources.
In 2022, PUD 3 was awarded $3 million through former U.S. Rep. Derek Kilmer’s congressional directed spending. Mason County also funneled $1.5 million through the American Rescue Plan Act to PUD 3 that year. These made the substation upgrade and switching station possible.
In 2025, Washington’s 35th District legislators allocated $1 million from the Washington State capital budget to assist with the project. PUD 3 is also approved for a $5 million state Community Economic Revitalization Board low-interest loan through the Committed Private Partner Program to support industrial site readiness in a greenfield location.
That’s $10.5 million toward the entire project. PUD 3 is still waiting to hear back on other applications to see if the final phases can be covered with grants, allowing it to proceed beyond the bridge capacity once outside funding is secured.
The partners
Small utilities can do big things, but it requires strong partnerships, particularly to acquire millions in grant funding. The multi-year project required multiple partners.
“It takes a unique group of individuals all working together to bring a project like this to completion. Public officials, landowners, engineers, manufacturers, project managers, and trades people all have different roles in a project this large—and all are equally important,” said Justin Holzgrove, PUD 3’s director of engineering and utility services.
One of those key partnerships was with Mason County Economic Development Council. Holzgrove serves on the board of directors, and PUD 3 is a champion for other members’ projects and events. Each time PUD 3 has sought information, support letters, or a voice to advocate for them, Mason County EDC has stepped up.
Community voices are important, too. From local small business owners who want to grow to large land developers who need these projects to build their grand visions, PUD 3 has seen partners come through. Connections with local chambers of commerce, port districts, county governments, residents, and more have been critical to funding applications.
These projects are happening in conjunction with major upgrades at nearby naval facilities and the construction of a new major freight corridor. The projects are all connected, and that drives the collaboration even further.
PUD 3 is confident the investments made now will position it well to meet the needs of new development in the future. In the Shelton urban growth area in south Mason County, a similar multiphase, multiyear industrial site readiness project is also brewing, and PUD 3 now has a successful blueprint to follow.
PUD 3 could move these projects forward alone, but it would take many more years and much more money to complete that way. It would come at the expense of the ratepayer, and maintaining economical utility rates is of utmost importance to PUD 3. Instead, staff continue to focus on building relationships that create fundable grant applications to move forward faster, building goodwill and understanding along the way.
After all, public utilities aren’t just about connecting power, broadband, and water. They also connect communities by providing the foundation for the opportunities those communities seek.
