San Jose Power Hub Breaks Ground

LS Power Grid California broke ground on May 20 on two Bay Area transmission projects that city and company officials say will expand electricity capacity into downtown San Jose by 2028. The work centers on the Skyline terminal site next to Pacific Gas and Electric’s San Jose B substation and a related line from South San Jose, according to LS Power, city documents and California utility filings. The projects are part of a broader effort to add transmission capacity as power demand rises from electrification, data centers and other large industrial loads. San Jose approved a franchise agreement for the work in March, and the California Independent System Operator and California Public Utilities Commission have already advanced key approvals for the underlying project. ### What exactly is being built beside PG&E’s San Jose B substation? The Skyline terminal is the northern end of LS Power’s Power Santa Clara Valley project, a high-voltage direct current link running from a new Grove terminal in South San Jose to downtown San Jose. CPUC project materials describe a roughly 13-mile underground 320-kilovolt direct current transmission line between the Grove and Skyline terminals, plus a short overhead tie from Skyline into PG&E’s San Jose B substation. (mercurynews.com) CAISO approved a modified version of the project on Nov. 12, 2024, increasing planned power injection at the San Jose B substation to 1,000 megawatts from 500 megawatts. That change required revisions to the Skyline terminal and a rebuild and expansion at PG&E’s San Jose B substation, including a new 230-kilovolt gas-insulated switchyard and a new transformer, according to an appendix filed with the CPUC. (ia.cpuc.ca.gov) ### Why are city officials tying this project to AI, data centers and electrification? San Jose officials said on March 24 that the LS Power projects would strengthen grid reliability, support economic development and advance the city’s climate and electrification goals. The city said the added transmission capacity would help serve advanced manufacturing, artificial intelligence and large-scale data centers, while also supporting electrified buildings, transportation and industrial operations. (ia.cpuc.ca.gov) Mayor Matt Mahan said in the city’s release that the grid expansion makes San Jose “the most power-ready city in America.” City Manager Jennifer Maguire said a “modern, resilient energy grid” is foundational to San Jose’s role as an innovation center. Those statements reflect the city’s case for the projects rather than an independent assessment. (sanjoseca.gov) ### How big is the capacity increase? The most cited figure is 1,000 megawatts of added injection at San Jose B, the level approved by CAISO in the 2024 project modification. Mercury News reported that amount could provide enough power for about 1 million additional homes, a shorthand also used in local coverage of the groundbreaking. (sanjoseca.gov) Engineering News-Record reported in April that San Jose’s two LS Power transmission projects together would add about 2 gigawatts of transmission capacity through roughly 17 miles of new infrastructure between existing substations, including a 12-mile underground section. That broader figure covers both the Power Santa Clara Valley and Power the South Bay projects, not just the Skyline terminal work downtown. (ia.cpuc.ca.gov) ### What approvals and agreements are already in place? The City of San Jose approved its franchise agreement with LS Power on March 24, clearing use of city rights-of-way for the transmission infrastructure. The city said construction was scheduled to begin in spring 2026 and finish by December 2028. The CPUC said LS Power filed its application for a certificate of public convenience and necessity on April 29, 2024, and that the agency is conducting the environmental review and application process. (enr.com) CAISO’s board approved the modified project in November 2024, and the city said the transmission work had already undergone environmental review through the CPUC process. (sanjoseca.gov) ### What comes after this groundbreaking? LS Power said in April that a separate CAISO-selected transmission project would connect Silicon Valley Power’s Northern Receiving Station in Santa Clara to PG&E’s San Jose B substation, building on the Power Santa Clara Valley and Power the South Bay projects. LS Power said those earlier projects are expected online in 2028. (ia.cpuc.ca.gov) By December 2028, the city expects the current LS Power projects to be completed, and PG&E’s rebuild and expansion work at San Jose B is part of what is needed to deliver the higher injection level approved by CAISO. Under the city’s franchise agreement, LS Power is also expected to install about three miles of empty conduit for possible future fiber-optic use in city streets. (sanjoseca.gov) (lspower.com)