San Jose, California has approved a franchise agreement with energy infrastructure developer and operator LS Power to build two major electric transmission infrastructure projects that will significantly strengthen the reliability of the city’s grid, support economic development and advance climate and electrification goals, it said on March 24.
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 city statement, “the projects will improve redundancy and enable two-way power flow, ensuring residents and businesses have access to reliable electricity even during periods of peak demand or unexpected outages.”
As part of the deal, LS Power will also install about three miles of “shadow conduit,” hollow underground tracks for the future incorporation of fiber optic cables to improve traffic signal coordination and support real-time data systems that monitor road conditions, detect incidents and enable faster emergency response.
The new transmission infrastructure directly supports San Jose’s ambitious climate commitments by providing the capacity needed for buildings, transportation and industrial operations to accelerate the transition to electrified systems, officials said. The projects have already undergone an 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 the projects are up and running, annual payments are expected to range from $500,000 to $750,000.
