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Port approves PG&E term sheet to pursue Embarcadero transmission route; submerged option could use port property
Summary
The Port Commission approved a term sheet and negotiation agreement with PG&E for a proposed 230 kV transmission line linking the Potrero Substation to the Embarcadero Substation; staff described multiple route options including a submerged bay route and an associated port option to acquire Hoedown Yard.
The Port Commission on Nov. 13 voted to authorize a term sheet and negotiate a companion agreement with Pacific Gas & Electric Co. (PG&E) for a proposed 230 kilovolt transmission line to provide a redundant feed to the Embarcadero Substation, a project PG&E plans to pursue under California Public Utilities Commission (CPUC) review.
Brad Benson, Port special projects manager, said PG&E is evaluating several routes between the Potrero Substation and the Embarcadero Substation, including a submerged route that would enter the bay just north of Pier 30 and run about 2.8 miles across the bay floor to a shore entry near 20th Street using horizontal directional drilling. The submerged option would require construction activities spanning roughly seven city blocks at shore entry and exit points; alternate onshore routes would affect more city blocks.
Port staff said a negotiated term sheet would grant PG&E use of roughly 0.5 million square feet of submerged port land for three cables on a 40-year lease (with a 26-year renewal option), with annual rent determined by a formula based on upland industrial appraisals. Based on the appraisal range discussed in the staff report, annual rent to the Port was estimated between $583,000 and $872,000, escalating thereafter. The term sheet also includes a port option to acquire the Hoedown Yard near Pier 70; staff estimated the option value at between $6.5 million and $9.8 million depending on appraisal outcomes.
"This is a heavily regulated project under CPUC jurisdiction," Benson said, noting that CEQA review would follow CPUC process and that the Port would likely be a co-applicant for permits affecting port jurisdiction. Staff recommended approval of Resolution 1290 to enter the term sheet and negotiation agreement and to participate in environmental and permit reviews.
A public commenter with a longtime energy-planning background supported the projects redundancy and called for additional site treatment around the proposed switchyard (fencing and screening). A PG&E representative confirmed the company is studying alternative locations for the existing dirt-recycling operation (Hoedown Yard) if the Port exercises the acquisition option.
The Commission approved Resolution 1290 by voice vote, authorizing staff to finalize the negotiation agreement and to participate in environmental review and permit applications where port approvals are required. Staff said onshore cable installation could start as early as December 2013, with offshore installation likely in 2015 and operation possible by December 2015 if permitting proceeds on the aggressive schedule described by PG&E.
