Cities Index.
Presentation - est. 5 minutes

San Jose City Council
April 7, 2026

Document
Presentation - est. 5 minutes
Meeting
April 7, 2026
Body
San Jose City Council
Original file
840 KB
Text extracted from the city's file for reading and search. Open the original on legistar.granicus.com. That file is the official record.

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

← All documents from this meeting