SAN JOSE — PG&E plans a major revamp of two key electricity substations in downtown San Jose as the utility races to stay ahead of rising energy demand from tech, housing and commercial projects.
The upgrades are slated to occur at PG&E’s Substation A, located next to the Diridon train station, and Substation B, near the corner of Coleman Avenue and Santa Teresa Street, according to information provided to this news organization by PG&E spokesperson Stephanie Magallon.
PG&E San Jose Substation B, located at 260 Coleman Avenue, is seen in the background in a May 2023 image capture. (George Avalos/Bay Area News Group)
The substation upgrades could help deliver power for wide-ranging efforts that are poised to reshape San Jose’s economic landscape.
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The array of downtown endeavors includes plans to develop housing and data centers, as proposed by global developer Westbank and local real estate executives Gary Dillabough, Jeff Arrillaga, Tony Arreola and Mark Lazzarini.
Perhaps the most high-profile enterprise planned for downtown San Jose is Google’s mixed-use, transit-oriented neighborhood near Diridon Station and SAP Center.
Here are some details, as provided by PG&E, of the work that the utility plans for each of the two substations:
— PG&E is rebuilding Substation A near the Diridon train station to support several efforts, including 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 future developments such as the Google transit village and the Santa Clara Valley Transportation Authority’s office plans for the Diridon Station area.
— The utility intends to upgrade San Jose Substation B at 260 Coleman Avenue to prepare for a new transmission line that LS Power will connect to this substation. The two efforts will boost electric capacity at the substation by about 1,000 megawatts. The increased capacity will support new data centers and increased power demand in San Jose.
“We have committed to some substation upgrades in here that will drive economic growth in San Jose,” Aaron Johnson, a PG&E senior vice president for local customer engagement, said during a Power Hour Breakfast that the San Jose Chamber of Commerce and PG&E hosted recently.
Google envisions the transit village near Diridon Station as a neighborhood of homes, offices, shops, restaurants, entertainment hubs and cultural loops within a mile-long footprint on the western edges of downtown San Jose.
The search giant’s transit village seems certain to be an energy-hungry endeavor that could benefit from an expanded and more productive PG&E substation in the vicinity.
Other projects could also greatly increase demand for energy in downtown San Jose.
Jay Paul Co. has launched a massive redevelopment of City View Plaza that will create a new neighborhood of homes, offices, retail, dining establishments and open spaces at arguably the best location in downtown San Jose. This development site is bounded by Almaden Boulevard, West San Fernando Street, South Market Street and Park Avenue.
The emerging housing village is across the street from an eye-catching office tower at 200 Park Avenue that Jay Paul Co. has also developed. Any tenants in that office building would also be poised to increase energy demand locally.
Oakland-based PG&E appears to view San Jose in particular and and Silicon Valley in general as key locations for the utility to provide electricity.
“San Jose is a really important community for us,” PG&E’s Johnson said. “We have a really good opportunity to increase energy throughout to the grid, drive down rates and increase economic growth.”
