6.1 SAN JOSÉ POWER STATUS UPDATE
Presented by: Kip Harkness, Deputy City Manager
Erica Garaffo, Assistant to the City Manager, Lead Resilience Strategist
CROSS-REFERENCED FROM TRANSPORTATION AND ENVIRONMENT COMMITTEE CITY COUNCIL PRESENTATION | DECEMBER 17, 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
TWO POTENTIAL
SERVICE AREAS
The City of San José filed two
interconnection requests* with LS
Power:
• Up to 250 MW in North San José
and 250 MW in Downtown San
José.
• ~50 MW for critical
infrastructure per location
• ~200 MW available for
Developer per location
• Potential catalyst for:
• 159 acres of economic
development land south of
RWF.
• Downtown development.
• LS Power transmission lines will be
operational by ~ June 2028.
• Developer to pay upfront for
infrastructure costs.
*Interconnection Request allows the
City to fully understand the costs and
begin reserving access to the
transmission infrastructure and
additional available power
NORTH SAN
JOSÉ
DOWNTOWN
SAN JOSÉ
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)
5 COLLABORATION WITH IBEW & PG&E
Collaborating with IBEW on:
• Long term Power Purchase Agreement project
selection criteria.
• Potential building electrification workforce
development programs.
• Municipal Utility Staffing
6 Collaborating with PG&E on:
• 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.
6.1 SAN JOSÉ POWER STATUS UPDATE
Presented by: Kip Harkness, Deputy City Manager
Erica Garaffo, Assistant to the City Manager, Lead Resilience Strategist
CROSS-REFERENCED FROM TRANSPORTATION AND ENVIRONMENT COMMITTEE CITY COUNCIL PRESENTATION | DECEMBER 17, 2024