NEWS RELEASE: City of San José is the Most Power Ready City in California with the Approval of New LS Power Transmission Projects. The agreement will strengthen grid reliability and support future growth. Post Date: 03/24/2026 4:00 PM FOR IMMEDIATE RELEASE Carolina Camarena, Director of Communications, City Manager's Office City of San José is the Most Power Ready City in California with the Approval of New LS Power Transmission Projects The agreement will strengthen grid reliability and support future growth SAN JOSE, Calif. (March 24, 2026) - The City of San José approved a franchise agreement with LS Power to construct major electric transmission infrastructure projects that will significantly strengthen grid reliability, support economic development, and advance the city's climate and electrification goals. Construction is scheduled to begin in spring 2026 and is expected to be completed by December 2028. These transmission investments will substantially improve grid reliability across San José and the broader South Bay region. By establishing new high-capacity connections between critical substations, the projects will enhance redundancy and enable bidirectional power flow - ensuring residents and businesses have access to reliable electricity even during periods of peak demand or unexpected outages. "A modern, resilient energy grid is foundational to sustaining San José's role as a global center of innovation," said City Manager Jennifer Maguire. "With these two transmission lines, we are maximizing public benefit from infrastructure built in our rights-of-way; and building a modernized energy backbone that will sustain Silicon Valley's leadership in innovation for decades to come." Reliable, abundant electricity is foundational to San José's continued leadership as a global hub of innovation and advanced industry. The expanded transmission capacity will position the City to accommodate emerging sectors - including advanced manufacturing, artificial intelligence, and large-scale data centers - that depend on significant and dependable power resources. These investments will help attract new businesses, create quality jobs, and reinforce the region's long-term economic competitiveness. "Thanks to this historic grid expansion, San José is the most power-ready city in America," said Mayor Matt Mahan. "This investment will power decades of economic growth and opportunity while holding partners to high standards for environmental protection, community impact, and real public value." Additionally, the new transmission infrastructure directly supports San José's ambitious climate commitments by enabling a faster transition to clean, electrified systems. Greater transmission capacity allows renewable energy to move efficiently across the grid while facilitating the electrification of buildings, transportation, and industrial operations. These projects represent a critical step toward achieving the City's long-term sustainability and climate goals. The two projects, Power the Santa Clara Valley Project and the Power the South Bay Project, were selected by the California Independent System Operator to meet critical reliability needs in the South Bay. Together, the projects will deliver approximately 2,000 megawatts of new transmission capacity to the region, enhancing how and where power can be delivered across Silicon Valley. These projects will add approximately 17 miles of new transmission infrastructure across San José. This includes a 12-mile underground power line along Monterey Road connecting to downtown San José, and about two miles of additional power lines in north San José along Los Esteros Road. These upgrades will expand the City's ability to deliver electricity safely and reliably to homes, businesses and major employers. As part of the agreement, LS Power will also install about three miles of "shadow conduit" - empty underground pathways - so the city can add new fiber optic cables in the future. These fiber optic cables would be used to enhance traffic signal coordination and support real-time data systems that monitor conditions, detect incidents, and enable faster emergency responses, strengthening public safety and making city streets more efficient and secure. The City Council approved a 10-year franchise agreement with LS Power, with automatic renewals for up to 40 years, giving both the city and the company the opportunity to revisit shared priorities and partnership opportunities over time. "The franchise approval marks a critical step for our grid reliability projects across the South and East Bay," said Casey Carroll, Senior Vice President of LS Power Grid California. "We're grateful for the strong partnership we've developed with the City of San José, and we look forward to building on that spirit of cooperation during construction and operation of these projects, as well as future initiatives to support our community." The agreement also ensures direct financial benefits for the community. LS Power will pay the City an annual franchise fee equal to 2.3% of net revenue, matching the rate paid by PG&E. Once operational, annual payments are expected to range between $500,000 and $750,000, all of which will be deposited into the City's General Fund to support local programs and services. The projects have undergone environmental review through the California Public Utilities Commission's Environmental Impact Report processes. About the City of San José With almost 1 million residents, San José is one of the most diverse large cities in the United States, Northern California's largest city, and the 12th largest city in the nation. San José's transformation into a global innovation center has resulted in one of the largest concentrations of technology companies and expertise in the world.

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