San Jose To Explore City-Owned Utility Grid

San Jose Spotlight

August 15, 2023

San Jose may soon have a new, city-run power utility.

In name, at least. San Jose City Council will vote Tuesday to amend its city code to establish “San Jose Power” — a city-run electricity utility to capitalize on two new high voltage direct current transmission lines coming through San Jose.

“These lines are once-in-a-generation, if not longer than that,” San Jose Economic Development Director Nanci Klein San José Spotlight. “This application process is to directly take some of that (new) power … the city would be the distributor instead of PG&E, but in limited areas.”

This is not a utility residents will be selecting instead of Pacific Gas and Electric or San Jose Clean Energy, Klein clarified, instead it will be used for key infrastructure sites like the San Jose Mineta International Airport and the Diridon Station substations, which are in need of power, rebuild and expansion.

“We’re really interested in making critical infrastructure like the airport get reliable, resilient, lower cost power,” Klein said.

The city’s initial study estimates 15% to 25% cost savings on electricity. In the fall of 2022, PG&E shifted their backlog for new loads to the electric grid to prioritize safety-related wildfire resistance projects; the backlog for new projects is as much as seven years, according to a city memo.

“If there were an ability to get power sooner and at lower cost, then that would mean housing units faster, jobs faster, revenues faster,” Klein said.

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