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Silicon Valley Power outlines major system expansions, projects and affordability concerns

City Council / Authorities concurrent meeting (City of Santa Clara) ยท January 28, 2026

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Summary

Silicon Valley Power presented a biannual update covering system expansion projects (receiving stations, 115 kV line, 40 MW battery), resource procurement, predictive maintenance and security upgrades; council questions focused on undergrounding, data-center impacts and rate affordability. The council moved to note and file.

Silicon Valley Power (SVP) delivered its biannual update on Tuesday, describing a portfolio of system-expansion projects, new technology deployments and customer-facing programs as the utility prepares for rapid load growth.

SVP Director Nico Prokos said the utility is pursuing multiple receiving-station rebuilds (Northern Receiving Station and others), a 115 kV transmission project, and construction of a 40-megawatt battery. Prokos highlighted work underway at the Northern Receiving Station (NRS) with an estimated completion in mid-2028 and additional substations and capacity upgrades through 2029. Staff outlined operational improvements including a predictive maintenance program for generation and substations, a new outage-management system launched in late 2025, and enhanced substation security with video and access controls.

SVP also reviewed its resource pipeline: contracted renewables (solar and wind) coming online across 2026-2029, and a portfolio approach to meet a forecasted 15-year load projection. Prokos cited supply-chain and tariff pressures (noting a large transformer order subject to import tariffs) and a 22% vacancy rate in staffing as near-term risks.

Council members asked for more detail on how expansion costs are allocated, whether data centers were being differentiated, options to incentivize on-site generation for large customers, undergrounding and aesthetics of substations, and affordability for residential ratepayers. Staff said a cost-of-service study is scheduled for Q3 and that much of the revenue used to build reserves comes from large customers; they also confirmed programs to support multifamily electrification and new residential rebates are in development.

Public commenters asked the council to consider affordability and questioned whether residents were receiving a fair share of benefits from revenues generated by data centers. SVP staff said they will return with a cost-of-service study to clarify allocations and pursue customer-facing programs to broaden electrification supports.

The council voted to note and file the SVP update.