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SVP outlines nearly $1 billion five‑year capital plan, bonds and contracts to rebuild substations and add transmission
Summary
Silicon Valley Power told customers it has an FY25 adopted budget of $670 million, a nearly $1 billion five‑year capital plan, multiple upcoming construction contracts and a planned second tranche of bond issuance to finance substation rebuild and transmission projects.
Silicon Valley Power (SVP) presented details of major capital work and financing at its State of the Utility meeting, including multi‑hundred‑million‑dollar substation rebuilds, a planned bond tranche and near-term contract awards.
SVP’s FY25 adopted operating budget is $670,000,000 and the utility described a five‑year capital program “almost a billion dollars,” according to Acting Chief Electric Utility Officer Nico Prokos. Prokos said SVP financed the initial tranche of bond issuances successfully at low interest rates and expects a second tranche in 2026 to finance additional work, including a roughly $240,000,000 final tranche referenced for rebuild and expansion of major substations.
Planned and in‑progress projects: Prokos listed several major projects. He said bids received on May 1 for an early package were about 6% under engineers’ estimates. Specific projects named included full rebuilds/expansions of substations referenced as KRS and NRS, a planned 15 kV transmission line between receiving stations estimated at $48,000,000, reconductoring of the Northwest Loop (2.62 miles), and a 50 MW / 4‑hour battery-energy-storage project inside the city limits with equipment orders already placed.
Contract and property actions: Prokos said Council approval would be sought to move forward on construction contracts and easement/property acquisitions needed for the 15 kV line and other projects. He said some procurements are affected by overseas supply chains and tariff issues, which are creating schedule risk for major equipment.
Why it matters: The capital program is directly tied to SVP’s growth projection and to the utility’s ability to maintain reliability as load increases. Financing decisions (bond timing and amounts) and contractor bid results will affect schedule and ultimately the timing of new capacity being available to customers.
What SVP did not commit: Prokos described planned council agenda items in June for several construction contracts but did not record any formal approvals at the presentation. He also did not disclose complete contract award decisions or final schedules for all projects.
Next steps: SVP said it expects additional contract approvals in June and a second bond tranche in 2026; staff will continue coordinating easement acquisitions and material procurement while working around supply‑chain and tariff constraints.
