Fremont City Council Meeting: 03/10/26 07:00 PM
3300 Capitol Avenue Div/Dept: Public Works
Fremont, CA 94538 Category: Agreements and Contracts
SCHEDULED
Sponsors:
COUNCIL STAFF REPORT (ID # 5654) DOC ID: 5654
Updated: 3/6/2026 8:16 AM by Dina Lewis Page 1
LS POWER FRANCHISE AGREEMENT - Adopt a Resolution of Intent to Hold a Public Hearing on April 7, 2026 to Consider Granting a Ten-Year, Non-Exclusive Franchise Agreement to LS Power Grid California, LLC., and Direct the City Clerk to Publish the Notice Required for the Public Hearing.
Contact Persons:
Name: Ian Champeny Hans Larsen
Title: Real Property Agent Public Works Director
Div/Dept: Public Works Public Works
Phone: 510-494-4759 510-494-4722
E-Mail: [email protected] [email protected]
Executive Summary: The purpose of this report is to facilitate granting a franchise agreement to LS Power Grid California, LLC (“LS Power”) to enhance the electrical grid in the southeastern part of the Bay Area. A first step in the approval process is to set a public hearing on the topic.
BACKGROUND: Over the last year, the City of Fremont has been working with LS Power regarding its Power the South Bay Project to install a new 230 kilovolt (kV) alternating current (AC) transmission line through Fremont for 12 miles (6 miles within Fremont) between existing substations in Santa Clara (near Levi’s Stadium) and in Fremont (on Boyce Road near Auto Mall Parkway).
The purpose of having a franchise agreement is to permit LS Power to install, construct, maintain and use under, along, across or upon the public streets, and rights-of-way within the City, pipes and appurtenances for transmitting and distributing electricity. The proposed electrical transmission line is planned to be underground in the south Fremont area and within segments of Fremont Boulevard, Cushing Parkway and Boyce Road.
This project will strengthen the electrical grid by providing robust connections and providing better access to cost-effective energy for residents and businesses. Construction is projected to begin in 2026 and conclude in 2028.
DISCUSSION/ANALYSIS: Electric transmission line upgrades are essential for ensuring reliable and sufficient electricity supply for Fremont and the greater Bay Area. With new technologies being developed, the current infrastructure requires increased capacity to meet demand.
LS Power will pay the City an annual fee in the range of 2.0%-2.3% of the Fremont portion of its gross revenue on an annual basis. The franchise also requires LS Power to provide a performance security bond in the amount of $200,000, updates in insurance requirements, indemnification, liability, and reimbursement of City administrative costs incurred by approval of the ordinance to cover the City’s costs of processing the franchise.
The term of the franchise is recommended to be 10 years with automatic renewals for successive 10-year terms up to 40 years. This enables the City to meet and discuss shared Council Staff Report (ID # 5654) Meeting of March 10, 2026 Updated: 3/6/2026 8:16 AM by Dina Lewis Page 2
interests and engage and secure partnership agreements to accomplish shared goals such as climate action, resiliency, and other programs.
FISCAL IMPACT: LS Power will pay an annual franchise fee in the range of 2.0%-2.3% of the Fremont portion of its gross revenue for the use of the public right-of-way to convey electrical transmission lines, with the first year franchise payment expected to be approximately $500,000 to $750,000. Parties will settle on the highest total percentage that meets federal and state regulations without undue burden to maintain LS Power compliance as a transmission-only utility.
ENVIRONMENTAL REVIEW: The California Public Utilities Commission (CPUC) is the lead agency for the Power the South Bay Project for which the franchise is being considered.
LS Power Grid California is in the process of obtaining a Certificate of Public Convenience and Necessity (CPCN) and environmental clearance for the Project from the CPUC. All aspects of the Project, including laydown areas, are being evaluated by the CPUC under CEQA, and LS Power Grid California must first obtain a Notice to Proceed (NTP) and environmental clearance from the CPUC before it can proceed with construction. The Final Environmental Impact Report (FEIR) for the Power the South Bay Project can be found at the weblink referenced below in this report.
WEBLINK: Final Environmental Impact Report for the Power the South Bay Project
ATTACHMENTS:
• LS POWER GRID - draft resolution of intent
RECOMMENDATIONS:
1. Adopt a resolution declaring the City Council’s intent to grant a franchise to LS Power Grid California LLC for the transmission of electric service in the City’s public rights-of-way.
2. Set a public hearing for April 7, 2026, to hear objections and introduce the franchise ordinance.
3. Direct the City Clerk to publish notice of the public hearing in a newspaper of general circulation within the City.