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Status Update: Reliability and Resiliency Strategic Plan Implementation (November 2025) Strategy/Action Status Cost
Strategy 1: Replace and Modernize Infrastructure
1.1 Replace aging
infrastructure
1.2 Upgrade capacity to
accommodate new loads
1.3 Improved feeder
switching capabilities
Strategies 1.1 – 1.3, the grid modernization project, will replace aging infrastructure and increase system capacity to meet future home electrification needs. In 2025 a pilot project replaced and upgraded aging infrastructure serving approximately 1000 residents. Staff evaluated the results from the pilot are and are incorporating lessons learned with future distribution reconstruction. Primarily, staff will be focusing on the replacement of legacy 4kV distribution systems (transformers and wire), replacing overloaded transformers systemwide, and upgrading portions of neighborhoods as residents fully electrify. Additional Capital Improvement work will focus on the reconstruction of substations service large areas of residential customers and upgrades to the City single transmission receiving station.
Electric Fund CIP for Grid
Modernization: roughly $224
million over the next five
years with an expected
additional $250 million
needed in the following five
years.
1.4 Second transmission
connection
Staff, with consultant help, continues to work with the California Independent System Operator (CAISO) and PG&E to build a second transmission corridor from the broader electricity grid to Palo Alto. In May 2025 CAISO approved construction of this second corridor in the form of a new 115 kV line from Ames to Palo Alto to be completed in 2034 as part of the CAISO transmission planning process. Staff and consultants are working with PG&E and CAISO to move the completion date to closer to 2030 as loads are increasing faster than expected in last year’s forecast.
Electric Fund CIP EL-06001
(115 kV Electric Intertie):
$250,000 for planning and
design work for application to
CAISO
1.5 Foothills undergrounding A key wildfire mitigation activity is undergrounding approximately 49,200 feet of electric overhead distribution lines and fiber optic cable in the Foothills area. This iterative project consists of multiple phases 1-5 and is expected to be complete in 2025. Phases 1,2, 3, and 5 were completed May 2025, and 10,000 Feet remaining in the MidPen Phase 4 area actively being constructed and planned for completion by mid-summer of 2026.
Electric Fund CIP EL-21001
(Foothills Rebuild): $8 million
Strategy/Action Status Cost
1.6 Reliability Metrics Metrics and proposed goals were provided to Council June 16, 2025 (Staff Report 2506-4769 Accept Electric System Reliability Key Performance Indices1) but the report was pulled from the consent calendar and is scheduled for City Council action on March 2, 2026. Metrics are provided in reports to the UAC, also in the Council packet.
0.05 FTE of staff time for
research and metric
development
Strategy 2: Operational Strategies to Improve Reliability and Manage Outages Effectively
2.1 Strengthen the
workforce
Concerted efforts are currently underway to recruitment, train, and retain lineworkers, system operators, engineers, inspectors to maintain system and respond to outages effectively. Staff have also contracted with third-party contractors to supplement staff to undertake emergency response, maintenance, and capital improvement projects. Significant progress has been made in filling critical vacancies like director, assistant director, lineworker, and engineer. In FY 2025, 44 vacancies were filled. Between July 2025 and January 2026, CPAU has 12 new hires and 17 promotions. As of January 2026, CPAU had 39 vacant positions or 14.66% vacancy rate of the authorized 266 FTEs. Nineteen of the vacant positions are in-progress recruitments.
1.0 FTE (spread among three
people) for additional
recruitment and retention
work
2.2 Wildfire protection
maintenance practices
Staff regularly updates its Utility Wildfire Mitigation Plan to reduce the risk of utility caused wildfire within higher fire risk areas. With the undergrounding of the Foothills area, the City’s vegetation management costs will be significantly reduced but still require some maintenance to maintain clear space around pad- mounted electrical equipment.
Expected future vegetation
management cost within the
fire area of $150,000 to
$200,000 per year
1 https://cityofpaloalto.primegov.com/meetings/ItemWithTemplateType?id=8431&meetingTemplateType=2&compiledMeetingDocumentId=14843 9 8
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Strategy/Action Status Cost
2.3 Communicate effectively
during outages
The new OMS allows CPAU to more quickly detect and respond to power outages and provide customers with timely notifications and updates. In FY 2025, OMS sent approximately 103,500 text messages for planned and unplanned outages and restorations. Staff has incorporated OMS texting features to support outbound communications during potential and active PSPS events. Staff will explore other uses for OMS, such as customer non-payments.
$73,000 was spent to develop
the system. Ongoing
maintenance involves 0.25
FTE and ongoing system costs
of $108,000 per year.
Strategy 3: Effectively Integrate and Ease Adoption of New Technologies
3.1 Configure the distribution
system to accommodate high
penetrations of solar,
batteries, and other
technologies
Staff has completed an evaluation of the distribution improvements needed to accommodate high penetrations of solar and storage and is currently evaluating whether these same improvements will also accommodate vehicle to grid technologies, smart panels, and flexible loads.
$30,000 to 50,000 in
consultant studies from
electric utility operating
budgets
3.2 Review, communicate,
and streamline permitting
and other regulatory rules for
efficient and flexible
electrification technologies
3.3 Communicate how to
electrify efficiently
Staff completed an inter-departmental internal review of various technologies to establish clear rules and guidelines for implementation:
•Planning and Development Services updated intake forms for electrical load calculations were updated. Status: Complete.
•Utilities updated transformer upgrade fees to eliminate the situation where a resident upgrades to a 400A panel and pays for the entire transformer upgrade.
Status: Complete.
0.25 FTE in staff effort from
being developed in parallel
with the City’s rollout of
advanced existing staff
resources
Strategy/Action Status Cost
3.4 Communicate how to
use technologies in a
grid-friendly way
•Utilities transformer upgrade policies for multi-family and non-residential properties take into account efficient and flexible technologies and strategies.
Status: Complete.
• Time of use (TOU) rates and a transition plan for these rates are currently metering infrastructure. The voluntary residential TOU rates were approved by Council. Staff provided an update to the UAC on implementation details in October 2025. Initial Launch Planned: Q1 2026
•Utility staff has developed an electrification guide for single family homes and posted it on its website. Status: Complete
•Utilities launched an electrification expert service which can provide guidance to residents on efficient electrification. Status: Complete
Strategy 4: Value the benefits of flexible technologies to the utility and community
4.1 Value the utility benefit of
flexible technologies on
electric supply costs
4.2 Value the utility benefit of
flexible technologies on
electric distribution costs and
capacity
4.3: Explore estimating the
value of resiliency for the
community
4.4: Estimate the cost of
various community resiliency
approaches
Staff is taking its final recommendations for Council review in March 2026. If Council approves the staff recommendations, the only actions needed will be occasional updates to this study as staff time permits.
See staff report for details
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Strategy/Action Status Cost
Strategy 5: Evaluate the resource needs for various demand reduction and resiliency programs
5.1: Evaluate utility-driven
programs to enhance
resiliency and lower the
demand on the grid
5.2 Evaluate equity-based
and need-based versions of
the programs
5.3: Evaluate community-
based versions of the
programs
5.4: Evaluate other resiliency
approaches like
neighborhood level
microgrids
Staff is taking its final recommendations for Council review in March 2026. If Council approves the staff recommendations, some additional work in 2026 related to long-term resiliency and microgrids will be needed before this item is complete.
See staff report for details
Strategy 6: Implement any demand reduction or resiliency programs chosen by the community Staff is taking its final recommendations for Strategies 4 and 5 for City Council review in March 2026. If the City Council accepts the CASC or UAC recommendation, no specific programs will be needed under this Strategy 6, though promotion and barrier reduction will continue to take place under Strategy 3, and commercial solar and battery project evaluations will take place as staff time permits.
See staff report for details