The Socialists running San Jose have finally figured out they can not afford to steal the local utility company. So, they have decided to stop trying.
“Improved relations with PG&E could lead San Jose officials to drop the proposal for a city-owned power utility despite unanimous support from City Hall.
As San Jose plans for growth to the north and downtown areas, Deputy City Manager Kip Harkness said in a recent memo that breakthroughs in talks with power giant PG&E could eliminate the “desirability” of a city-run utility, or San Jose Power. That option involves searching for a private developer-customer willing to fund infrastructure costs in exchange for long-term access to lower electricity rates.
“We will continue to explore both the option of a private developer-customer for standing up San Jose Power, and our partnership with PG&E,” he said at a San Jose City Council meeting on Dec. 17.”
Imagine this mismanaged city running your energy supply. They can’t fill potholes, but want to raise your energy costs, add tax dollars and them limit energy supply. That is what happens in all socialist countries that the government owns the energy supply.
San Jose-PG&E partnership could end power utility plans
by Vicente Vera, San Jose Spotlight, 12/28/24 https://sanjosespotlight.com/san-jose-pge-partnership-could-end-electric-power-utility-plans/?utm_campaign=Daily%20Spotlight%20-%20Newsletter&utm_medium=email&_hsenc=p2ANqtz–QmOS2zLQCgPNKcyLR3mYQgTRbApEMJ5pu8RyABWRkClYoEBJZGOjLE0tL8vMZiyrz0DrobbjCCydsEj-oPJ4nifjCNlzQVRZa0-ILo9wjUxOYf10&_hsmi=340564947&utm_content=340564947&utm_source=hs_email
Improved relations with PG&E could lead San Jose officials to drop the proposal for a city-owned power utility despite unanimous support from City Hall.
As San Jose plans for growth to the north and downtown areas, Deputy City Manager Kip Harkness said in a recent memo that breakthroughs in talks with power giant PG&E could eliminate the “desirability” of a city-run utility, or San Jose Power. That option involves searching for a private developer-customer willing to fund infrastructure costs in exchange for long-term access to lower electricity rates.
“We will continue to explore both the option of a private developer-customer for standing up San Jose Power, and our partnership with PG&E,” he said at a San Jose City Council meeting on Dec. 17.
Harkness told San José Spotlight when the city manager’s office makes a decision on how it wants to proceed by March, the developer-customer model involving San Jose Power may no longer be necessary if city leaders continue making progress with PG&E. The energy company could agree to construct the electrical distribution infrastructure required to support the energy emitted by the new high voltage transmission lines.
“Certainly from PG&E’s perspective, they would like us to shelve (San Jose Power) as we move forward,” Harkness told San José Spotlight. “But at this point — I’m thinking there’s a little bit of a bake off and we’re keeping both options open because our job at the city manager’s office is to really see what the best alternatives are for the city and then present those to the elected officials.”
Erica Garaffo, a strategist in the city manager’s office, said the timing is particularly good for exploring a city-owned utility and improving electrical infrastructure. The recent approval of new high voltage transmission lines offers the potential for not just lower transmission costs, but for more than double the energy capacity that could power new developments in San Jose.
“The city of San Jose currently uses roughly 1,000 megawatts on average, so this (would add) 2,000 more (megawatts) on top of that,” Garaffo said. “Some of it would go to Santa Clara, but it’s still a significant investment in power capacity for the city.”
San Jose Community Energy Director Lori Mitchell said in July 2023 that PG&E was unprepared to update the city’s electrical infrastructure because the company was focusing on wildfire safety-related projects and dealing with setbacks after filing for bankruptcy in 2019. That concern led to the proposal for San Jose Power.
In light of the city’s grievances, Cristina Ramos, PG&E government affairs representative, said the company became ready to hear out San Jose’s energy concerns and goals.
“Over the last year we’ve been focused to ensure that we are delivering for all of our customers and communities on reliability, new service connections and building capacity to support your electrification and economic development,” she said at the council meeting.
Representatives with San Jose Community Energy Advocates said PG&E claims a new city-run utility would likely have to raise costs to run financial assistance programs, but San Jose Clean Energy is able to offer a variety of financial assistance programs to its low-income customers. There’s no reason San Jose Power couldn’t follow a similar path, advocates said.
“We are still very supportive of San Jose’s efforts to move forward with establishing a municipal utility. Of course, due diligence is needed, and San Jose needs to complete the studies to assure the municipal utility’s viability,” San Jose Community Energy Advocates spokesperson Glen Garfunkel told San José Spotlight. “We feel a nonprofit (municipal utility) will better serve our community.”
In a five-page letter sent to city leaders, PG&E representatives said they discussed with San Jose energy officials a plan where PG&E would build out the electrical infrastructure to support new economic activity in downtown.
Company representatives said PG&E knows there is more they can do to advance the city’s aggressive economic goals, and they’re ready to meet the city’s energy needs.
“PG&E has had the privilege and honor of serving residents of San Jose for more than 100 years, and we are committed to serving San Jose residents for years to come. In fact, we expect to invest more than $1 billion in San Jose over the next decade to add grid capacity and improve grid strength and reliability,” PG&E spokesperson Stephanie Magallon told San José Spotlight.
