The continuing growth of Silicon Valley Power (SVP) dominated the Santa Clara City Council meeting.
At its first meeting in a month, the council considered three items, all relating to SVP. The first was a simple update. The second dealt with adding new positions to keep up with continued growth. The third involved securing energy from two vendors.
Although the council approved SVP adding 12 new positions, the additions won’t cost the city anything. That’s because vacancy within the city has created some financial slack to work with, Manuel Pineda, the city’s chief electric utility officer, told the council.
“The growth we’re having, it is very unique. No one else has that,” Pineda said. “The idea of doubling in size in a five- to ten-year period, that is pretty unique to us.”
The new positions amount to $3.8 million a year.
To demonstrate the need for employees, Pineda noted how similar utilities have fewer employees per station and per megawatt hour of energy produced. Since 2019, SVP’s operating expenses have grown from $480 million to $625 million.
Energy Contracts
On a similar note, Pineda also sought council approval on two power purchase agreements. The agreements are with Aquamarine and Castanea, both located 140 miles away in King’s County.
The agreement with Aquamarine will provide 250 megawatts of solar energy a year for 15 years at a cost of $25 million a year. The Castanea agreement will provide 150 megawatts of solar and 135 megawatts of battery energy for 15 years, costing $46 million a year.
Pineda said securing the contracts increases the city’s load by roughly 20%. Without the two contracts, he said, 53% of the city’s energy portfolio is greenhouse-gas-free. The addition of the projects increases that percentage to 73%.
Pineda called the contracts a “key component” to SVP’s growth, adding that securing the energy now is better than in the long term because it avoids market volatility.
Updates
Finally, Pineda updated the council on a variety of goings-on with SVP during a bi-annual report.
Six new data center projects are under construction. The Scott and Kifer receiving station is 90% designed with the northern receiving station 60% designed, Pineda said. The latter is slated for completion in 2027.
Pineda emphasized how swiftly SVP is growing, noting how the utility is “enhancing and expanding.”
A transmission line from PG&E Newark to the SVP northern receiving station increased from $510 million in 2022 to $959 million, something Pineda said “is not a surprise, [but] is still a surprise.”
The council unanimously approved all three items. Council Member Kevin Park was absent for the approval of the energy contracts and approving new SVP positions.
Consent Calendar Spending
The council approved the following spending in one motion via the consent calendar:
- A $100,000 purchase order with Flyers Energy to provide Silicon Valley Power Mobil and Chevron oils and lubricants for one year. This item allows the city manager to execute up to four one-year extensions for a total of $500,000 over five years.
- Two five-year, $750,000 contracts, one with Hazardous Materials Institute and another with Pro Safety & Rescue, Inc., for confined space rescue team services for Silicon Valley Power. The item allows the city manager to increase these contracts by $500,000 as needed, for up to a $2 million total for both contracts.
- A $10 million, five-year extension to four contracts with Rising Edge Technologies, Power Systems Professionals, Inc., Electric Power Systems International, Inc. and Delta Star, Inc. for electrical equipment maintenance, repair and testing.
- A $320,884, three-year extension to a contract with Granicus for a software-as-a-service content management system, including software subscription, web design, support and maintenance. Total contract is now $983,999.
The next regularly scheduled meeting is Tuesday, Aug. 27, in the Council Chambers at City Hall, 1500 Warburton Ave. in Santa Clara.
Members of the public can participate in the City Council meetings on Zoom at https://santaclaraca.zoom.us/j/99706759306; Meeting ID: 997-0675-9306 or call 1 (669) 900-6833, via the City’s eComment (available during the meeting) or by email to PublicComment@santaclaraca.gov.
