Power Infrastructure
San Jose, Calif., LS Power Ink Deal for 2 GW of New Transmission Capacity
City will gain 17 miles of new power infrastructure from LS Power to boost redundancy, enable more building and transportation electrification and add more renewables,
San José, Calif., has approved a franchise agreement with energy infrastructure developer-operator LS Power to construct two major electric transmission infrastructure projects that will significantly strengthen the city's grid reliability, support economic development and advance climate and electrification goals, it said March 24. Construction is set to begin shortly and be completed by December 2028.
Selected by California grid operator CAISO to meet critical reliability needs in the South Bay, the projects will add about 2 GW of transmission capacity via 17 miles of new transmission infrastructure between two existing substations, including a 12-mile underground section. According to a statement from the city, “the projects will enhance redundancy and enable bidirectional power flow, ensuring residents and businesses have access to reliable electricity even during periods of peak demand or unexpected outages.”
As part of the agreement, LS Power will also install about three miles of “shadow conduit," empty underground pathways for future addition of fiber optic cables set to enhance traffic signal coordination and support real-time data systems that monitor roadway conditions, detect incidents and enable faster emergency response.
The new transmission infrastructure directly supports San José’s ambitious climate commitments by providing needed capacity for buildings, transportation and industrial operations to expedite transition to electrified systems, officials said. The projects have already undergone environmental review through the California Public Utilities Commission.
Under the 10-year franchise agreement, which includes automatic renewals for up to 40 years, LS Power will pay the city an annual franchise fee equal to 2.3% of net revenue. Once projects are operating, annual payments are expected to range between $500,000 and $750,000.
