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Council introduces ordinance to grant LS Power a franchise for two 230 kV transmission projects
Summary
Council unanimously voted to introduce an ordinance granting LS Power a nonexclusive franchise for portions of the Power of the South Bay and Power of the Valley Connector projects, adopt related CPUC EIR findings as a responsible agency and require encroachment permits and undergrounding in the city.
The Santa Clara City Council on July 7 held a public hearing and voted unanimously to introduce an ordinance granting LS Power Grid California LLC a nonexclusive franchise to install and operate portions of two 230 kV regional transmission projects that cross Santa Clara: Power of the South Bay and Power of the Valley Connector.
Craig Moback, public works director, and Nico Prokos of Silicon Valley Power described the routes, which are largely underground within Santa Clara, and the coordination with neighboring cities and the California Independent System Operator. Moback said some short overhead segments are planned near the regional wastewater facility for operational reasons; LS Power said those elements are to be undergrounded when the site conditions allow.
Key franchise terms noted by staff include a franchise fee equal to 2.3% of the Santa Clara portion of the project gross revenue (estimated at about $175,000 annually for the first project), an initial 10‑year term with automatic 10‑year renewals up to 40 years, insurance and indemnity requirements, and obligations for restoration of pavement and relocation if city projects conflict.
Prokos said CAISO funds the line and the revenue requirement is recovered through transmission access charges, and staff confirmed there are no minimum take requirements that would force the city to purchase capacity. The council also accepted CPUC’s certified environmental review as the lead agency and adopted the EIR findings as a responsible agency; some mitigation and monitoring responsibilities are implemented through the CPUC process.
Public comment raised timing questions tied to unrelated development; staff clarified project schedules are independent and that final encroachment permits will be issued after franchise and right‑of‑way coordination.
The council voted unanimously to waive first reading and introduce the ordinance, and directed staff to return July 14 with final ordinance language for adoption.
