Mickel said the bulk substation upgrade will see the replacement of two 20MVA transformers with two 50MVA transformers - more than doubling the capacity of the substation.
"I am advised that Ergon Energy is midway through a major upgrade of the Warwick bulk supply substation," Mickel said.
"The first of the 50MVA transformers has already been installed in a project that was completed 12 months ago and tenders have been called for the supply of the second 50MVA transformer.
Ergon said additional major works underway in the area include an additional 12.5MVA transformer to be installed in the West Warwick zone substation this financial year, to improve capacity and reliability, at a cost of $1.8 million.
Four million dollars will also be spent on asset inspection and defect management (AIDM) works in the Warwick and Stanthorpe areas - a program of preventative maintenance.