With PG&E credits expiring, Napa council directs staff to prioritize north segment of Jefferson Street undergrounding

The Napa City Council on Feb. 17 heard a presentation from city staff and PG&E on the Jefferson Street utility undergrounding project and directed staff to prioritize the north segment of the corridor amid a multi-million-dollar funding gap.

Deputy Public Works Director Jessica Lowe told the council the full project—originally designed to run from Trancas Street to Lincoln Avenue—came back from bids at about $15.2 million. PG&E officials said the city’s Rule 20a work credits are essentially fixed: after recent California Public Utilities Commission decisions the city cannot borrow future credits, trade credits with other communities or expect new annual allocations; Napa’s balance was described as roughly 9.9 million work credits.

“Once utilities are underground, utility poles and overhead wires will be removed, which improves aesthetic, safety, and clear sidewalk barriers,” Lowe said. PG&E’s rule-28/Rule 20a presenters described the CPUC decisions that ended annual work-credit allocations and eliminated the five-year borrowing option, meaning Napa cannot make up the difference by borrowing future credits.

PG&E senior manager Timon Norimoto and program manager Justina Louie described four options to address a roughly $5.3 million shortfall: canceling the project (which would forfeit credits by the program sunset), forming an underground utility assessment district (property-owner approval would be required and was reported as unpopular at a recent community meeting), paying the gap using city SIFU developer-impact funds (city balance was cited at about $1.3 million, insufficient to close the gap), or reducing project limits/phase the work to maximize undergrounding achievable with available credits.

Staff recommended the scope-reduction approach as the most viable path to complete some undergrounding while maximizing available credits. The staff analysis weighed pedestrian benefits (the north segment has 13 utility poles located in the walkable path), connectivity to existing underground utilities and prospects to extend fiber for traffic-signal improvements, and the high cost of trenching beneath the Napa Valley Wine Train railroad crossing.

Council members asked technical and funding questions—how credits are earned (by meter count), whether joint-trench designs would invite AT&T and other utilities to participate, and whether the work would include fiber connections for traffic signals. PG&E said joint-trench designs invite other utilities to participate but private providers (for example, Comcast) are not required to join; AT&T is regulated under Rule 32 and is expected to remove overhead attachments.

After discussion about maximizing use of the approximately 9.9 million credits and the cost drivers, council members indicated a clear preference for prioritizing the north segment (Trancas toward the railroad tracks) to gain the largest pedestrian and connectivity benefit while avoiding the most expensive railroad-crossing work. Council direction was recorded on the public record; staff will return with refined designs and a bid plan that reflects a reduced scope. Construction, if pursued, was estimated to start as early as mid-2027, depending on redesign and the bidding climate.