PG&E says $40 million Monterey substation rebuild will be operational in Q2 2026 to boost capacity and reliability
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Summary
PG&E officials told a Monterey County news briefing that rebuilding the Monterey Substation will add a 30 MVA transformer, convert distribution voltage from about 4 kV to 21 kV, provide roughly 15 MVA of headroom and is expected to reduce outage exposure by about 50 percent when it goes into service in Q2 2026.
PG&E presented technical and schedule details for a rebuild of the Monterey Substation, saying the work is on track to enter service in the second quarter of 2026 and will cost in excess of $40,000,000. Company officials said the project replaces older 4 kilovolt distribution configurations with 21 kilovolt distribution equipment and installs a new 30 megavolt-ampere transformer and two new feeders.
"We're getting pretty close to wrapping up this project," Michael McCarty, senior manager of electric distribution planning at PG&E, said during the Jan. 14 briefing. McCarty said the substation upgrade will increase local distribution capacity and provide operational flexibility for routine maintenance and emergency switching.
McCarty said the upgrade is the equivalent of adding capacity to serve about 7,500 homes and will provide roughly 15 MVA of headroom so the substation can accommodate new large loads without repeated transmission upgrades. He also said the project is expected to reduce outage exposure in the area by about 50 percent based on historical estimates.
Jeremy Howard, identified by the host as regional senior manager for PG&Es Central Coast Division, described community outreach and recent storm impacts. "After the big storms we saw just over the course of Christmas Eve and Christmas Day," Howard said, "we had about 182 locations here in Monterey County that were impacted, mostly tree and branch related." He said the new switching capability would allow crews to restore more customers while repairs are made.
Company presenters walked through a before-and-after view of the distribution system, saying nearby Viejo and Del Monte substations currently serve roughly 18,000 and 28,500 customers respectively and that the rebuilt Monterey Substation would serve roughly 10,500 customers after completion. PG&E said shorter line lengths and an additional 21 kV source in the core of Monterey would reduce exposure to outages and support reliability for nearby commercial landmarks, including Cannery Row, the Monterey Bay Aquarium and the city of Pacific Grove.
PG&E staff said the design also allows a future transformer to be added without repeating transmission work, though additional medium-voltage distribution upgrades or new lines would still be required to serve specific sites. The presenters agreed to share their slide deck with the host for wider media distribution.
Next steps: PG&E maintained the projected in-service date of Q2 2026 and said they are completing remaining construction and testing before formally placing the substation into operation.