Palo Alto City Council
December 18, 2023

Palo Alto Fiber Project and
Construction Alignment
with Electric Grid
Modernization
November 7, 2023
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AGENDA
• Project(s) Recap
• Fiber Expansion Plan
• Fiber Backbone Expansion “Rebuild” Project
• Fiber-to-the-Premises (FTTP) Project
• Electrification
• Grid Modernization for Electrification Project
• Informational Updates
• Alignment of Fiber Expansion Plan and Grid Modernization • California Environmental Quality Act (CEQA) Initial Study • Joint Pole Ownership Coordination with AT&T
• Contract Amendments
• Other Updates
- 3
HOW DID WE GET HERE?
• What has Council Approved?
• Dec 19, 2022 Council Approved to
• Proceed with dark fiber backbone
expansion “rebuild”
• Build FTTP Phase 01 in multi-
phased approach without debt
financing
• Jun 19, 2023 Council Approved​
• New Grid Modernization for Electrification project in FY24 Budget • New Fiber-to-the-Premises project in FY24 Budget

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RECAP OF PROJECTS

FIBER BACKBONE REBUILD FIBER-TO-THE-PREMISES GRID MODERNIZATION Estimated cost $25.6M (FO-16000) Estimated cost for Phase 1 $20M; Citywide $102M (FO-24000)
Estimated cost $220M to $306M
(EL-24000)
Funded by Electric and Fiber funds Funded by Fiber Fund Funded by the Electric Fund; debt financing and/or grants
Supports the City’s fiber licensing
service and internal needs:
 Improve fiber and electric
system reliability, security
and capacity
 Enable more connectivity for
City departments
 Internal communication
needs for SCADA, AMI, DA
and other critical
infrastructure
Supports the City’s high speed
broadband internet needs:
 Provides City-owned
high-speed internet
service
 Provides new capacity for
dark fiber licensing
 Community investment in
its own broadband
network
Supports City’s S/CAP goals and
future demand
 100% residential
electrification
 Upgrade existing
substations,
replace transformers,
convert existing 4 kVa lines
to 12 kVa to increase
capacity and meet
future demand.
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INFORMATIONAL UPDATES
Topics to address prior to construction
 Pilot aligning fiber and grid modernization project to inform on • Pole make-ready and replacement
• Material lead time and warehousing
• Internal resources to implement and coordinate projects  Initial Study for CEQA in progress to evaluate potential impacts • Identify physical, biological, social and economic factors • Provide mitigation efforts
 Joint Pole Ownership Coordination with AT&T in progress • Approximately 5,550 poles shared with AT&T
• Upcoming replacements and coordination will overwhelm staff • Eliminated Northern California Joint Pole Association membership option  Contract Amendments
• VIP Powerline – power and fiber construction
• MP Nexlevel– substructure and fiber construction
• Magellan/Entrust– power and fiber engineering design
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Pilot Map Overlay with Phase 1 & Areas of Interest
Pilot Area Map to align Grid Modernization with FTTP
(1,224 customers and 409 poles)
Proposed Phase 1 FTTP Map (Additional 5,560
customers and 1,241 poles)
Areas of Interest Map based on Lower Construction
Cost, Higher Density, Less Competition, Higher
Customer Interest
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Pilot Project Plan (draft outline subject to change)
 Pre-construction
• Aerial Power Make Ready Engineering - Feb 2024
• Materials Ordering/Warehousing - Feb 2024
• CEQA Approval - Apr 2024
• Fiber Hut at Colorado Power Station - Oct 2024
 Construction
• Power: Mar 2024 - Oct 2024
• Fiber: Jun 2024 - Feb 2025
 Operations & Customer Outreach
• Operations Support Systems “OSS”
• Business Support Systems “BSS”
• Marketing/Event(s)
• Community Meeting(s)
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Q&A