Coastal Fla. community advances $80-million utility undergrounding project

(UI) - The Village of Key Biscayne is preparing to take formal steps toward a long-discussed plan to underground all electric and telecommunications infrastructure across the island, signaling a shift from years of study and delay to potential project execution. 

During a recent council workshop, members expressed consensus around pursuing full undergrounding rather than partial hardening of existing overhead systems. The proposal would convert all feeders, laterals and telecom lines to underground service, along with associated transformers, switches, handholes and pedestals. Where required by flood elevation constraints, some equipment would be elevated. The project would also include roadway restoration, swale repairs, landscaping and new service connections to customer meters.

Preliminary cost estimates place the island-wide conversion between $60 million and $81 million, nearly double the $46 million estimate presented in 2019. Funding would come primarily from a $100 million general obligation bond approved by voters in 2020, marking a departure from earlier proposals that relied on user fees tied to calculated benefit areas.

Florida Power & Light would provide equipment credits covering roughly half of electrical conversion costs, while the Village would be responsible for labor. Telecommunications infrastructure would receive no utility credits, leaving the Village to fund 100% of relocation costs for those systems. For Zone 1 alone, FPL’s equipment contribution was estimated at approximately $6 million.

Council members raised concerns about data gaps, particularly the lack of comparative reliability metrics between underground and hardened overhead feeder systems—information previously requested from FPL. Despite these uncertainties, the council indicated a preference for a comprehensive approach rather than a hybrid model.

Village staff outlined a phased execution strategy, recommending construction begin in the southern residential zone, continued design work in central and northern areas, and a temporary pause near the K-8 school until stormwater system plans are finalized to avoid conflicts between infrastructure projects.

Formal recommendations, funding structures and next steps are expected to be presented for council action at the Feb. 10 meeting.