January 27, 2026 Item #4
City Council
OF Item #4: Silicon Valley Power
CITY Bi-Annual Update
1852
RTC 25-15610
THE MISSION CIT
January 27, 2026
1 Agenda
Load Growth and Strategic Priorities
System Expansion Projects
Technology Projects
Resources, Procurement and Customer Programs
Major Issues Coming in the next 12 months
2 POST MEETING MATERIAL
January 27, 2026 Item #4
SVP Historic Load Growth
460
420
380
340
Monthly Gigawatt Hours (GWh)
300
260
-Monthly Energy
220
—Rolling 12 month Average
3 Load Growth - Key Priorities
• Two Multi-phased Activities (SVP and CAISO)
• Analyzed New Load for Upcoming Projects and Load Ramp • Additional Power and Transmission Capacity
• CAISO to develop and construct projects for transmission capacity • Working with CAISO on additional transmission capacity and growth • SVP In-City Projects
• Consultant support
• Rebuild receiving stations
• New transmission
Northern Rocoiving Station
• Upgrading existing transmission
Battery storage
4 2
January 27, 2026 Item #4
Newark
Powering the South Bay In Progress LS 230V
- SVP Switching Station (SSS)
In Progress
LS 230 kV (Newark to NRS) Los Esteros
Critical Energy Facility (LECEF)
NRS
LS 230 kV (Metcalf to San Jose B)
In Progress
115 kV (NRS to KRS) 115 kV
Proposed 230 kV
50MW/200MWh Battery Energy Storage Project
KRS
Donald von Raesfeld
Proposed Power Plant
230 kV (San Jose B to NRS) - San Jose B
In Progress LS 230 KV
Regional
Power Plant
Alameda County
Metcal
City of Santa Clara inergy Cente
5 System Expansion Projects
Northern Receiving Station Kifer and Scott Receiving Stations (NRS) (KRS & SRS)
• Upgrade and expansion • Full rebuild and expansion
• Contractor: Henkels & McCoy West • Contractor: DMZ Builders • Schedule Schedule
/ NTP issued Jul. 29, 2025 / NTP issued Aug. 20, 2025
/ Construction underway / Construction underway
• Estimated completion date: • Estimated completion date:
• Jun. 13, 2028 • SRS: Mar. 5, 2029
• KRS: Jun. 23, 2029
3 January 27, 2026 Item #4
Capital Improvement Projects
60KV Junctions and Transmission line projects
Stender Way Junction Energized April 2025
Laurelwood Junction In construction, tentative energization 04/2026 Northwest loop Capacity Upgrade Tentative energization 1st quarter 2026 Juliette Substation Expansion In Design Tentative Energization 1st Quarter 2027
Homestead substation In scoping and initial design phase • Tentative energization phase 1, 2029, 2nd
quarter, Phase 2, 4t quarter 2030
Great America Parkway & Tasman Lighting in construction, completion date end of 2025 replacements
Palm Substation Expansion Tentative Energization, 3rd quarter 2028 Agnew substation Rebuild Tentative Energization, 2029
7 Maintenance Program Updates
Generation (Power Plants)
Master Service Agreements
• Gas Turbine, Steam Turbine, Generator, and Rotating Equipment Implemented Predictive Maintenance Program
Strategic Capital Projects to upgrade and replace major facility equipment, including Turbine and Balance of Plant Controls, SCR and CO Catalysts, and Cooling Tower overhaul
Substations
Implemented Predictive Maintenance Program
• Thermography, Partial Discharge Testing, and Transformer Oil Testing by 3d Party quarterly in all Substations
Developed Asset Management Program
• Implementation is underway in phases through 2026
Transmission and Distribution
Implemented tree trimming contract
Implemented two new contractor contracts for T&D maintenance and construction
Implemented a detailed utility pole assessment
8 4
January 27, 2026 Item #4
Technology Upgrades
Outage Management System
• OMS Project Kick-off: January 15, 2025
• System Go-Live: Launched November 2025
Generation & Battery Resource Modeling and Risk
Management Software
• Optimizes forecasted generation and battery operations • Strengthens portfolio planning and risk management
• Competitive RFP completed; vendor evaluation in progress • Software implementation targeted for mid-2026
Customer/Contractor Rebate System
Brillion hosted database software to process rebates for customer programs Launched: Residential - Spring 2025, Commercial/Contractor - Fall 2025 ----
9 Technology Upgrades
Safety Training Program
• Unified Computer-Based Training platform for all SVP staff • HSI deployed to all staff January 1, 2025
Two new contracts for hands-on safety training for T&D, Substation, and Generation
Better training content and status tracking tools for managers Citywide Work Management Software Tools
RCOS Software - Automated "callout", scheduling & crew manageme ontract executed - October 202
Began rollout Q2 2025 to Water/Sewer, SVP Customer Service and Engineering
• Public Works, Community Development, Finance, Parks & Rec., Electric Field Personnel and Crew Manager - Q1 2026
10 January 27, 2026 Item #4
Technology Upgrades
Drawing Management System in Pilot Phase.
• AutoDesk Vault software installation phase complete.
Pilot phase is in process for 2026
Software will track revisions and design history.
Geographical Information System (GIS)
migration to ESRI ArcGIS Pro
Kick off Meeting in January 2026
• User friendly interface
3D integration
Project Based Work
Advanced Analysis Tools
Data Management
11 Physical Security Improvements
DHS Assessments began in 2024
Approved by Council at the July 8, 2025 meeting
Enhance safety & security across SVP facilities
Deter criminal activity & unauthorized access
Provide real-time data to law enforcement
3 Phases
Phase 1: 7 Critical Generation and Substations
Completed by December 2025
Phase 2: Roll out to remaining faculties
(roughly 27 assets)
Completed by December 2026
Phase 3: training and policy and procedure creation
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January 27, 2026 Item #4
Physical Security Improvements
The new security system will provide:
• Depth of coverage across critical areas
• Video intercoms at select gates and entrances
• View stations in Operations and Generation Control
Centers
• Speakers in key locations to deter theft and issue
real-time audio warnings
Access controllers with: C Simper
• Secure remote door access Good afternoon!
Guests, start here.
• Real-time monitoring of assets
• Deliver
• Advanced reporting in conjunction with PD
• Multi-factor authentication
13 Resource Stack 2025-2035
9,000,000 Casteneda Cimatron Wind Grace Solar Trolley
Solar (Newly signed)
300 MW 10 MW(2027)
8,000,000 (Q2.2026) 280MW BESS (2029)
150 MW& Battery
Storage
7,000,000 135MW
(ontine Fab. 2025)
6,000,000
5,000,000
4,000,000
3,000,000
2,000,000
1,000,000
2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035
Biomass/Biogas Solar Wind
Geothermal Small Hydro • Large Hydro
111/, Total in Pipeline - Natural Gas -Forecasted Load
—RPS Target Forecasted Load
14 7
January 27, 2026 Item #4
Customer Engagement
Equity-Focused Electrification Mitigation Plan
Kickoff - Fall 2025
Community Solar Feasibility Study - in progress awerin The Center of What's Rosuible Program Changes
•Enhanced EV commercial and multifamily offerings
New rebates for residential HVAC replacements
Residential EV Charger rebates
New HVAC tune-up rebate and new solar tune-up rebate
K-12 education programs
City Building Lighting Upgrades
Assisted City with upgrading 40 buildings
Community workshops and events
• Solar, Induction Cooktop, Lighting workshops
Art & Wine, Auto Show, Bike to Anywhere, Earth Day/Arbor Day, Halloween, Holiday Tree Lighting Rate increase outreach - began October 2025
New Programs Launching This Year...
Residential New Construction - Multi-family and ADU Building Electrification Incentive Program - Managed by a 3° party
15 Challenges Ahead
Policy Uncertainty
From Local, State & Federal. Making it hard to plan.
Tariffs Project Delays
Increasing equipment costs and limiting Large Capital projects have inherent risks in sourcing options due to international trade timelines - transmission, local grid expansion, restrictions. etc.
Supply Chain Staffing
Long lead times and material shortages are Difficulty recruiting and retaining skilled delaying critical infrastructure projects. workers is slowing project development and operations.
16 8
January 27, 2026 Item #4
Major Issues Coming
in the next 12 months
Q1 Q2
• 60kV System Impact Studies Completed • SVP requested line re-rate of PGE NRS-SRS • SVP 15 year (2028-2041) Load Forecast accepted #1 & # 2 Transmission Line in preparation for by the California Energy Commission in Dec. 2025 Summer 2026 loading. • CAISO Transmission Planning Process 2026/2027
• Launch multifamily/ADU program
Phase 1 Kickoff in January.
• SVP participation in CAISO Large Load Working • Substation agreements negotiations for the Group with PG&E, So Cal Edison, and San Diego next approved TPP customers Gas & Electric • SVP to release capacity evaluation and new • Conditionally approved interconnection of 10.5 MW queuing process for interconnection of 60kV of generation to SVP system
customers
• Action to approve budget for SVP System
Expansion Project at NRS and SSS for provision for • New Engineering Service Agreements a third 230kV Interconnection to SVP going to grouping
council on February 10th.
• PG&E on schedule for the interconnection of Santa
Clara Series Compensation Device
17 Major Issues Coming
in the next 12 months
Q3 Ongoing
• Cost of service study • Procurement efforts for the NRS 3rd CAISO line • Construction contract award anticipated (TBD pending project approval) for 115kV Transmission Line from NRS to 80kA breaker
KRS Transformer procurement (230kV and PST)
• TPP Ph-0 TPP 2027-2028 System Expansion
Miscellaneous other procurements
Plan Report.
• Substation agreements for next TPP approved
• SVP's 130th birthday celebration - July
customers
• Launching new modeling software for resources
• Continued evaluation of PPAs for growth
• Continued support of the SVP sustainability futures
program
• California Independent System Operator (CAISO)
Transmission Planning Process (TPP)
18 9
January 27, 2026 Item #4
THANK YOU
SILICON
VALLEY
POWER.
CITY OF SANTA CLARA
Powering The Center of What's Possible
19 KHO
HOME• NEWS • THE CRITICAL POWER CHANNEL
Silicon Valley Power stockpiles discontinued GE
Silicon Valley data centers stand empty
Vernova JMUX, expects substation costs to go up
with tariffs awaiting power connections - report
Grid issues mean facilities have yet to be energized
Nowmoril 2925 L, Matthew Gooding D Haveyoursay
Los Angeles Gimes Data Centers - Santa Clara's Third Largest General Fund Revenue Generator
Data centers in Silicon Valley stand
empty, awaiting power (NOVEMBLA 10-2025
Santa Clara City Council Questions
Intel looks to fund SVP substation expansion Silicon Valley Power's Ability to Deliver for Santa Clara data center growth
Energy to Data Centers
Looks io add 17MVA to support ils data center camous
MORE NEWS ROLEN
ilicon Valley data centers totalling nearly 100MИ
could 'sit empty for years' due to lack of power - Silicon Valley Power says data center load to huge installations are idle because Santa Clara double by 2035, will need geothermal power can't cope with surging electricity demands and batteries Plots out the difficult pathway to 24/7 green energy
tate lamoc
20 10
Slide 20
KHO Can you add more global data center issues?
Kathleen Hughes, 2025-12 05T16:47:28.328
AKO 0 Added a second slide
Astra Kredel, 2025-12 08T23:00:31.028
AKO 1 Maybe for closed session
Astra Kredel, 2026-01 OST19:37:53.491
January 27, 2026 Item #4
Council Communication and Actions
Oct. 13, 2020 Master service agreements with severa July 18, 2023 Updated City Council regarding these key near- engineering consultant firms term projects
Apr. 6, 2021 Comprehensive review of upcoming load growth October 10, Authorized the purchase of up to 12 high voltage and capital projects to the City Council 2023 transformers- $81,392,908 Sep. 28, 2021 System Got Pan StadS 's Three-Year March 19, 2024 Informational Report Regarding Route Analysis for 115kV Transmission Line from NRS to KRS
Apr. 5, 2022 updated connection and load development fees April 23, 2024 tepdated connection fees and load development for SVP
Nov. 15, 2022 City Council accepted SVP's System Expansion May 7, 2024 Authorized the negotiation and purchase of high Plan for the California Independent System voltage circuit breakers-$38,000,000.
Operator's Transmission Planning Process
May 9, 2023 Cord intentto issue tax exempt electric system 21 Council Communication and Actions
May 28, 2024 Authorized the negotiation and purchase of high Nov. 12, 2024 Approved MND and MMRP and Route Approval voltage disconnect switches, station service for the 115kV Transmission Line from NRS to voltage transformers, voltage transformers and KRS (Continued from 10/8/24) capacitive voltage transformers, and combinatior
evenue meteringtransformers - $17,400,00 Nov. 12, 2024 Authorize ion an hanto panel and seres May 28, 2024 grounding resistors- $14,950,000
Nov. 19, 2024
Sep. 10, 2024 Approved the issuance of electric revenue bonds which provide funding for the large System
Expansion Plan projects Dec. 3, 2024 Delegation of Authority to the City Managertc Action Continued on an MND and MMRP and Vegotiate and Execute Amendments to Oct. 8, 2024
Route Approval for the 115kV Transmission Line * stem capaci Expansion anal Senicestor from NRS to KRS
22 11
January 27, 2026 Item #4
Battery Energy Storage Project
Capacity up to 50MW/200MWh (4 hours daily)
Completed:
• IFC BESS Site Design (Civil, Electrical & Structural) • IFC SVP Transmission Line & Control Enclosure Designs Approved Permits (Civil & Encroachment)
In progress:
Fire, Electrical, & Structural
Example of a Tesla Megapack
• Permitting with the City of Santa Clara
: Conduit installation Urinemenations
Vangusad guipment Procurement by ameresco has been placed for Transformer Inverter transformers
• Switchgear : Disconnect switches
Battery Control building
Main breaker
Expected Completion Date:
3rd Quarter 2026
23 Challenges Ahead
Assessing Tariff Instability: Estimation based on August 2025 Tariffs Cost of Materials Used for System Expansion Projects
$210.4 $217.8 $194
$200 0
$47.2 $54.6 $21.1
$180.0
$160.0
$140.0
• Est. Tariff Increase
$163.2 $163.2 $172.9 Current Cost (Pre-Tariff)
$80.0
$60.0
$40 0
$20.0
$0.0
Jun-25 Jul-25 Aug-25
24 12
January 27, 2026 Item #4
AKO
Lead-Time Ladder for Critical Compute Infrastructure
Full Data Center Build (100 Mw) 300 wks
Transmission Line Permitting 250 wks
Substation Equipment 100 wks
Large Power Transformer
Distribution Transformer- 40 wks
50 100 150 200 250 300
Estimated Lead Time (weeks)
Additional Key Priorities
Maintenance Programs
Generation (Power Plants)
• Master Service Agreements (2021 and 2025): Gas Turbine, Steam Turbine, Generator, and Rotating Equipment
Implementation of Predictive Maintenance Program
Strategic Capital Projects to upgrade and replace major facility equipment, including Turbine and Balance of Plant Controls, SCR and CO Catalysts, and Cooling Tower overhaul
Implementation of Predictive Maintenance Program (2022):
Thermography, Partial Discharge Testing, and Transformer Oil Testing by 3rd Party quarterly in all Substations.
Developed Maintenance Program (2024) - Phased implementation is underway through 2026.
Transmission and Distribution
Implementation of new proactive tree trimming contract (2020 and updated 2022) and strategic tree trimming philosophy
Two new contractor contracts (2024) - T&D maintenance and construction.
26 13
Slide 25
AKO Kathleen to finish
Astra Kredel, 2025-12-10T19:06:42.287