REPORT TO COUNCIL
SUBJECT
Title
Action on Resolution of Intention to Grant a Non-Exclusive Franchise to LS Power Grid California, LLC for the Power the South Bay and Power the Valley Connector Projects and Setting July 7, 2026 as the Public Hearing Date for City Council Action on the Proposed Non-Exclusive Franchise
Report
BACKGROUND
Electric transmission line upgrades are essential for ensuring reliable and sufficient electricity supply for Santa Clara and the greater Bay Area. With electricity usage growing, the electrical grid requires increased capacity to help ensure reliable electric service. The California Independent System Operator (CAISO) is a non-profit Independent System Operator serving California that oversees the operation of California's bulk electric power system, transmission lines, and electricity market generated and transmitted by its member utilities.
Power the South Bay Project: In 2023, CAISO selected LS Power Grid California, LLC (LS Power) to develop, construct, and operate the Power the South Bay Project which will install a 12-mile high-voltage electric transmission line that will connect the existing Pacific Gas and Electric (PG&E) Newark substation in Fremont, through San Jose, and to the existing Silicon Valley Power (SVP) owned Northern Receiving Station (NRS) substation in Santa Clara (Attachment 1). The Power the South Bay Project is designed as a 230 kilovolt (kV) alternating current (AC) transmission line and will be a combination of overhead and underground systems. In Santa Clara, the project will install an underground electric transmission line along Lafayette Street.
Power the Valley Connector: In April 2026, CAISO selected LS Power to develop, construct, and operate the Power the Valley Connector Project which will install a 7-mile high-voltage electric transmission line between the NRS Substation and Pacific Gas & Electric's San Jose B Substation near downtown San Jose (Attachment 2). The Power the Valley Connecto...
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