PG&E plans big San Jose power hub upgrades as economic growth beckons

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SAN JOSE As the utility scrambles to keep up with the growing energy demand from tech, housing, and commercial projects, PG&E plans to significantly upgrade two important electricity substations in downtown San Jose.

According to PG&E spokesperson Stephanie Magallon, the improvements will take place at PG&E’s Substation A, which is next to the Diridon train station, and Substation B, which is close to the intersection of Coleman Avenue and Santa Teresa Street.

The substation improvements may contribute to the supply of electricity for extensive initiatives that have the potential to transform San Jose’s economic environment.

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Plans to build apartments and data centers are among the downtown initiatives being undertaken by international developer Westbank and local real estate developers Mark Lazzarini, Jeff Arrillaga, Tony Arreola, and Gary Dillabough.

Google’s mixed-use, transit-oriented area close to Diridon Station and SAP Center is arguably the most well-known business planned for downtown San Jose.

According to PG&E, the utility plans to do the following work on each of the two substations:

The energy-efficient Net Zero Initiative planned for downtown San Jose, new rail lines at the Diridon train station, including BART and electrified Caltrain service, the electrification of homes and vehicles, and upcoming developments like the Google transit village and the Santa Clara Valley Transportation Authority’s office plans for the Diridon Station area are all being supported by PG&E’s reconstruction of Substation A near the Diridon train station.

In order to get ready for a new transmission line that LS Power will connect to this substation, the utility plans to modernize San Jose Substation B at 260 Coleman Avenue. The substation’s electric capacity will increase by roughly 1,000 megawatts as a result of the two initiatives. San Jose’s growing power demand and new data centers will be supported by the expanded capacity.

At a recent Power Hour Breakfast organized by the San Jose Chamber of Commerce and PG&E, Aaron Johnson, a senior vice president for local customer engagement at PG&E, stated, “We have committed to some substation upgrades in here that will drive economic growth in San Jose.”

Within a mile-long footprint on the western outskirts of downtown San Jose, Google envisions the transit village at Diridon Station as a community of residences, workplaces, stores, eateries, entertainment venues, and cultural activities.

An enlarged and more efficient PG&E substation nearby would be beneficial for the energy-hungry endeavor that is the search giant’s transportation town.

The demand for energy in downtown San Jose could possibly rise significantly as a result of other initiatives.

In what is perhaps the greatest position in downtown San Jose, Jay Paul Co. has begun a comprehensive makeover of City View Plaza that will create a new neighborhood of residences, workplaces, shops, restaurants, and open spaces. Park Avenue, South Market Street, West San Fernando Street, and Almaden Boulevard all enclose this development property.

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Jay Paul Co. also created the striking office skyscraper at 200 Park Avenue, which sits across the street from the new housing village. Additionally, any tenants in such office building would be in a position to raise local energy consumption.

Located in Oakland Silicon Valley in general and San Jose in particular seem to be important places for PG&E to supply electricity.

Johnson of PG&E stated, “San Jose is a really important community for us.” We have a fantastic opportunity to boost economic growth, lower rates, and add more energy to the system.

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