(d)1 LARGE-LOAD ENERGY CUSTOMER DEVELOPMENT
STATUS REPORT
TRANSPORTATION AND ENVIRONMENT COMMITTEE | FEBRUARY 9, 2026 PRESENTED BY:
Erica Garaffo, Assistant to the City Manager (Large-Load Energy Customer Development Lead) 1 WHY THIS MATTERS
Reliable electricity is now a key constraint on San José’s economic growth Large-load energy customers are critical to General Fund stability City action focuses on speed, accountability, and infrastructure readiness 2 COUNCIL DIRECTION & PG&E AGREEMENT
March 2025:
Council direction
to pause
municipal utility
exploration and
negotiate a
partnership with
PG&E
July 2025:
Implementation
Agreement executed
with PG&E
Dedicated staffing
and enforceable
timelines for 12
large-load
projects (>20 MW)
and 250MW for
RWF Plant Lands
Development
3 PROGRESS TOWARD COUNCIL FOCUS AREA GOALS –
GROWING OUR ECONOMY
GOAL
TRACKING
Q4
2025-26
Q3
2025-26
Q2
2025-26
Q1
2025-26 Focus Area Goals
2 out of 3 1
(Scheduled) 0 1 1
2.1 Three data centers/large energy
projects receive permanent power
from PG&E by June 2026.
1 2 3 out of 2
2.2 Two new data center/large
energy projects in the Building Plan
Review phase by June 2026.
2 0 2 out of 5
2.3 Five new data center/large
energy projects in the Planning
Entitlement phase by June 2026.
4 CITYWIDE
COORDINATION
MODEL
TECHNOLOGY:
+ Shared tracking
inventory of projects
from pre-application
through
energization
PROCESS:
+ Biweekly PG&E
coordination and
quarterly performance
scoring
+ Monthly internal
meeting
PEOPLE:
+ Cross-departmental Data
Center Development Team
+ Large Load Energy
Customer Development
Lead (OED)
+ Data Center
Development Facilitation
Officer (PBCE)
5 ELECTRICAL INFRASTRUCTURE DELIVERY
Biweekly coordination with PG&E,
Monthly updates on project
milestones, Quarterly Scoring
12 projects under Implementation
Agreement
2 energized; remaining 10 will be
energized by 2030
PG&E Scored as of
Q4 2025 Project ID Quarter Expected
A-1 Q3 2028 Q4 2028
A-2 Q2 2026 Q2 2026
A-3 Q4 2026 Q4 2026
A-4 Q2 2029 Q2 2029
A-5 Q2 2028 Q2 2028
A-6 Q4 2027 Q4 2027
A-7 Q4 2025 Energized
A-8 Q4 2025 Energized
A-9 Q4 2028 Q4 2028
A-10 Q1 2030 Q1 2030
A-11 Q4 2026 Q4 2026
A-12 Q1 2030 Q1 2030
GREEN YELLOW
Project is within 45-120 (1 Quarter) days behind schedule. Minor permitting or supply chain delays that are actively being addressed. Mitigation plan in place that does not delay the inservice or permanent power energization date or require leadership intervention.
Project is within 45 days of target schedule. No outstanding agency reviews, permits, or approvals beyond normal processing times. No escalated issues requiring focused senior
management attention to resolve (i.e., beyond regularly scheduled meetings) 6
REGIONAL TRANSMISSION:
LS POWER Two transmission projects
totaling 2,000 MW, expected
energization mid-2028 Franchise Agreement for
Council Consideration March
2026 First full utility permit on track
by June 2026 Construction avoids 2026
sports event impacts 7
FISCAL BENEFITS OF DATA CENTERS
$3–$7M Annual General
Fund Revenue Per 50–99
MW Data Center once fully
built out
Minimal Traffic And Service
Demands
Retains Economic Activity
Locally
8 ATTACHMENT: ENVIRONMENTAL
REQUIREMENTS FOR DATA CENTERS IN
SAN JOSE
Key Points: Water assessments ensure sufficient
supply and analyze environmental
impacts under normal and dry
conditions (CEQA §15155). San José Clean Energy customers receive 65% or 100% renewable,
carbon-free power (SJMC §§26.20.010,
26.10.165). CEQA review identifies environmental
impacts, required mitigations, and
project alternatives (CEQA §§15002,
15003, 15126). 9
KEY
TAKEAWAYS
Council direction is producing results
PG&E Agreement improves accountability
Strong fiscal upside with environmental
safeguards
Continued coordination remains critical
10 (d)1 LARGE-LOAD ENERGY CUSTOMER DEVELOPMENT
STATUS REPORT
TRANSPORTATION AND ENVIRONMENT COMMITTEE | FEBRUARY 9, 2026 PRESENTED BY:
Erica Garaffo, Assistant to the City Manager (Large-Load Energy Customer Development Lead) 11