Actions Related to the
Agreements with
Hydrostor
April 7, 2026
Presenters:
• Lori Mitchell, Director of Energy
Department
• Phil Cornish, Principal Power Resources
Specialist
NEW RENEWABLE AND RELIABILITY PROJECTS
Since 2019, SJCE has contracted for
over 1 gigawatt (GW) of new
renewable energy and storage
resources including:
• Community solar
• Firm delivery solar
• Solar paired with storage
• Geothermal
• Wind
• Stand-alone energy storage
1 ABOUT THE DEVELOPER & TECHNOLOGY
• Founded in 2010, Willow Rock
is owned by Hydrostor Inc., a
developer and technology
provider for utility-scale energy
storage facilities.
• Successfully developed small-
scale A-CAES project in
Ontario, Canada.
• 200-megawatt A-CAES facility
under development in Australia.
• 7,000 Megawatts of projects in
development pipeline.
2 HYDROSTOR AGREEMENT SUMMARY
3 • Key Benefits
• Contributes to SJCE meeting CPUC
regulatory requirements
• CPUC Procurement Orders*
• Annual and Monthly Resource Adequacy
obligations.
• Contributes to storage needs identified in
SJCE’s Integrated Resource Plan.
• Brings Technology diversity to SJCE storage
portfolio.
• Agreement Summary
• Seller: GEM A-CAES LLC (aka Willow Rock)
• Developer: Hydrostor, Inc.
• Technology: Advanced Compressed Air Storage
• Products: Resource Adequacy, Energy Settlement
• Location: Rosamond, Kern County, CA
• Expected in-Service Date: June 1, 2030
• Price: Fixed, no escalation
• Term: 20 years
• Annual Cost: $3,960,000
• Total Cost: $79,200,000
*CPUC Decisions and Rulemaking: 21-06-035, 23-02-040, 25-016-019
CC POWER BACKGROUND
Formation
• City Council authorized SJCE to form and join California Community Power in January 2021.
• CC Power is composed of 9 member CCAs allowing those members to combine resources to procure cost-effective energy projects on behalf of 2.7 million customers and collectively provide 30,000 GWh of energy annually. 4 PROJECT SELECTION CRITERIA
• Labor: On-site construction, including continued repair and maintenance, will be covered by the Project Labor Agreement as well as a Maintenance Labor Agreement. • Executed Letter of Commitment for a Project Labor Agreement and Maintenance Labor Agreement with:
• The State Building and Construction Trades Council of California and; • The Kern, Inyo and Mono Counties Building and Construction Trades Council • Location: Kern County, California
• Environmental Stewardship: has a low likelihood of affecting sensitive habitats or species, and any impacts will be formally mitigated;
• Community Engagement: intends to implement a community benefits plan for the local community including financial investments in Kern County. 5 RECOMMENDATION
Adopt a resolution authorizing the Director of the Energy Department or their designee to negotiate and execute the following two related agreements for the procurement of a share of the GEM A-CAES LLC long-duration storage project, with any non-material modifications developed, as appropriate, in consultation with the City Attorney, and subject to the annual appropriation of funds, in an amount not to exceed $3,960,000 annually and $79,200,000 in aggregate in Calendar Years 2030 through 2050:
1. Project Participation Share Agreement between California Community Power, the City of San José, CleanPowerSF, Peninsula Clean Energy, Redwood Coast Energy Authority, Silicon Valley Clean Energy, and Valley Clean Energy; and
2. Buyer Liability Pass Through Agreement between California Community Power, GEM A-CAES LLC (or its affiliate), and the City of San José. 6 QUESTIONS?
Staff:
Lori Mitchell, Director of Energy Department
Phil Cornish, Principal Power Resources Specialist, Energy Department