REPORT TO COUNCIL
SUBJECT
Title
Action on a Resolution Declaring Silicon Valley Power's Intention to Issue Tax Exempt Revenue Bonds for Reimbursement of Expenditures from Several Capital Improvement Projects
Report
COUNCIL PILLAR
Promote Sustainability and Environmental Protection
Deliver and Enhance High Quality Efficient Services and Infrastructure
BACKGROUND
At the April 20, 2021 City Council meeting, staff presented Silicon Valley Power's (SVP) Quarterly Update with a focus on SVP's estimated near-term and long-term load growth, growth plan, load limitations, and new major capital projects to replace end of life facilities and to accommodate the projected load growth. The electric load has increased by more than 20% over the last decade and continued increases in demand are expected over the next decade. To support this increase and maintain the existing load, several large capital improvement projects have been identified. These projects include replacing two receiving stations and constructing a battery storage system that will be used to manage SVP's peak demand to avoid over-stress on the distribution and transmission grid and maximize the use of renewable and greenhouse gas (GHG) free energy.
The two receiving stations are Scott Receiving Station (SRS) and Kifer Receiving Station (KRS). These receiving stations step down (transform) power from the high voltage transmission system to the primary distribution system and serve as the entry point of power into the electrical system. SRS was initially constructed in 1968 and KRS was built in 1975. While SVP has performed regular maintenance on these assets, both receiving stations are approaching the end of their useful life and are scheduled to be replaced. Replacement of these receiving stations are needed to maintain system reliability for existing customers and increase system capacity allowing for future growth.
The two receiving station projects were included as part of the recently approved...
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