(D) 4. SAN JOSÉ POWER STATUS UPDATE
Presented by: Kip Harkness, Deputy City Manager
Erica Garaffo, Lead Resilience Strategist
TRANSPORTATION AND ENVIRONMENT COMMITTEE | DECEMBER 2, 2024 If the City were to provide Municipal Utility for Electric Service in limited areas of the city, could that be done in a way that would…
1. Reduce electricity energy costs for SJ Power Customers?
2. Allow the development of more innovative and energy efficient buildings?
3. Increase the electrical resilience of the City of San José and our critical infrastructure for both climate change and emergency response?
4. Enable us to attract and retain the skilled, trained, and talented workforce required to perform this work effectively and reliably?
EXPLORATORY PHASE – KEY QUESTIONS
STANDING UP SAN JOSÉ POWER WOULD ENTAIL…
2 Electricity
Generation
Transmission
Interconnection
Electrical
Distribution
Customer
City Team & Consultants
3 Expansion
of Purified
Water
Economic
Development
Land
CAISO TRANSMISSION
LINES – 2000 MW OF
ADDITIONAL CAPACITY
CAISO is contracting with LS Power to build
two new transmission lines through and into
San José:
• Transmission Line #1 (North San José):
1000 MW – High voltage AC line running
from Fremont to Santa Clara past Regional
Wastewater Facility.
• Transmission Line #2 (Downtown San
José): 1000 MW – High voltage DC line
running from Coyote Valley to Downtown
San José.
Both lines will be constructed between 2026-
2028, with full operation expected between
mid to late 2028.
Proposed LS Power
Transmission Line #2
Proposed LS Power
Transmission Line #1
4 Expansion
of Purified
Water
Economic
Development
Land
LS Power
Converter
Station
MUNICIPAL ELECTRICAL SERVICE NORTH SAN JOSÉ
The City of San José filed an
interconnection request* with LS
Power:
• Asking for up to 250 MW in North
San José.
• ~50 MW for critical
infrastructure
• ~200 MW available for
Developer
• Potential catalyst for 159 acres of
economic development land
south of RWF.
• LS Power transmission lines will
be operational by ~June 2028.
• Developer to pay upfront for
infrastructure costs.
Potential SJ
Power NSJ
Connection
Point
*Interconnection Request allows the City to fully understand the costs and begin reserving access to the transmission infrastructure and additional available power 5 LS Power
Converter
Station
MUNICIPAL ELECTRICAL SERVICE IN DOWNTOWN SAN JOSÉ
Potential SJ
Power Downtown
Connection Point
The City of San José filed a
second interconnection request
with LS Power in Downtown San
José:
• Asking for up to 250 MW in
Downtown.
• ~50 MW for critical
infrastructure
• ~200 MW available for
Developer
• Potential catalyst for downtown
development.
• LS Power transmission lines will be
operational by ~June 2028.
• Developer to pay upfront for
infrastructure costs.
MUTUAL COOPERATION AGREEMENT
Developing a Mutual Cooperation Agreement (MCA) to
with potential developer/customer to advance staff’s
exploratory phase and feasibility assessment to the
next level of due diligence.
Developer Responsibilities Under MCA:
• Reimburse the City for feasibility assessment costs.
• Evaluate specific infrastructure needs for proposed
developments.
• Develop and refine business case, staffing plan, and
financing strategy.
Under the MCA, the potential developer/customer
would be granted an exclusive opportunity to develop
an agreement to launch San José Power to serve their
development(s)
6 COLLABORATION WITH IBEW
Energy department meeting with IBEW on:
• Long term Power Purchase Agreement (PPA)
project selection criteria.
• Potential building electrification workforce
development programs.
The City Manager’s Office met with IBEW twice to
understand their perspective on the City’s exploration
of a municipal utility, especially concerning staffing.
The City plans to continue meeting with IBEW to
gather their feedback as we refine our San José
Power opportunity analysis.
7 POTENTIAL MEMORANDUM OF UNDERSTANDING
• Developing an MOU for cooperation on the
economic development of Downtown and
North San José through the timely construction
of the electrical distribution infrastructure
required to support development in those
areas and meet the City’s decarbonization
goals.
• Currently being drafted and would commit to
providing competitive terms including certainty
and speed for interconnections.
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