Belco Holdings is set to sign an agreement to build a $3 million "west city sub-station'' at the development site for the PW's waterfront, ensuring power to the west end of the city.

It ends a long running saga in which planning authorities blocked the much needed sub-station, originally planned for Woodbourne Road, at the site of the former Woodbourne Guest House.

For months, Belco president Garry Madeiros warned he would not be able to guarantee the power supply to the west of the city, until he could get a new sub-station for the area. Originally planned to be operational this summer, the sub-station should now be switched on a year behind schedule during the summer of 1998.

Last year, a compromise with planning authorities sited the proposed development further along the road on property owned by the Bank of Bermuda.

Said Mr. Madeiros, "Woodex wasn't our number one spot, but eventually it was the only spot. Then we had some negotiating difficulties and differences with the bank with regards to how much it was going to cost and all of the other associated conditions.

"So we went out looking elsewhere as we were negotiating. And PW's started the process of the plans of their development and we started talking to them.

And in fact, that was a better route and technically a better choice than the one we already had permission for.'' In fact, Mr. Madeiros conceded the irony that it is even better than the original Woodbourne Guest House site that Belco first wanted.

He said, "Technically, this is the best of the three. It is also best because it won't have to be stuck out in the middle, like you have at Woodex car park, right in front where there is a sub-station.'' Belco announced this week record profits of nearly $15 million. One component of that success was the absence of hurricanes and storms during 1996. The good weather caused the electricity utility to occasion a reduction from the previous year of transmission and distribution expenses of more than half a million dollars.

Belco Holdings president and CEO Garry Madeiros said, "In the year 1995 we had $560,000 in expenses due to hurricanes that we didn't have in 1996.

Replacing poles, putting power back on, lost sales, overtime incurred over two or three weeks when guys were working 16 hours a day.'' The move to underground electricity cables continues slowly, with an estimated $1 million to $2 million expended on it annually. All of the company's transmission is underground, but only about 120 miles out of nearly 300 miles of their distribution system is underground.

Garry Madeiros