Power Technology

LS Power to construct new underground transmission line

The project will connect two substations across seven miles to support electricity demand and grid reliability in the Bay Area on the US west coast.

The California Independent System Operator (CAISO) has selected LS Power Grid California (LSPGC) to deliver a new 230kV underground transmission line linking Silicon Valley Power’s Northern Receiving Station Substation and Pacific Gas & Electric’s (PG&E) San José B Substation.

CAISO’s board approved the project as part of its 2024–25 transmission plan, with costs estimated at between $150m and $200m and an expected operational date of 1 June 2030.

This project aims to address growing power needs and strengthen the reliability of the electric grid in the Bay Area on the US west coast.

The transmission line will extend approximately seven miles and build on existing LSPGC projects including Power Santa Clara Valley and Power the South Bay, which are scheduled to come online in 2028.

CAISO selected LSPGC’s proposal from a total of five qualified bids following a comparative review against technical criteria outlined in its tariff provisions.

LSPGC, in conjunction with PG&E, will manage the financing, construction and initial operation of the new infrastructure.

PG&E will assume ownership and long-term responsibility for operating and maintaining the line once it becomes active, with the aim of accommodating increased energy demand and ensuring ongoing system resilience in the San José region.

LS Power development president Paul Thessen said: “We appreciate CAISO's continued confidence in LS Power through this competitive selection.

“We have consistently delivered on our commitments in a timely manner, and this project builds on our growing footprint in California and extensive experience successfully developing transmission projects across the country.”

At present, LSPGC operates the Orchard Substation in Fresno County and is developing five further transmission projects in California, including two in the Bay Area.

In February, NRG Energy completed the acquisition of 18 natural gas-fired generation facilities from LS Power, with a total capacity of approximately 13GW, along with CPower’s commercial and industrial virtual power plant platform.