


SAN JOSE — PG&E is planning a major revamp of two key electricity substations in downtown San Jose as the utility races to stay ahead of rising energy demands from tech, housing and commercial projects.
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.
The upgrades could help deliver power for wide-ranging efforts that could reshape San Jose’s economic landscape.
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. Google also has plans for a mixed-use, transit-oriented neighborhood near Diridon Station and SAP Center.
According to PG&E, it is rebuilding Substation A to support efforts such as the energy-efficient Net Zero Initiative; new rail lines at 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.
Upgrade plans for Substation B at 260 Coleman Ave. will prepare it for a new transmission line for LS Power, PG&E stated. 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. It is expected to benefit from an expanded and more productive PG&E substation in the vicinity.
Other projects could also greatly increase demand for energy.
Jay Paul Co. launched a massive redevelopment of City View Plaza that will create a new neighborhood of homes, offices, retail, dining establishments and open spaces. The proposed 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 a tower at 200 Park Ave. that Jay Paul Co. also developed.
Oakland-based PG&E appears to view San Jose in particular and Silicon Valley in general as key locations for the utility to provide electricity.
“San Jose is a really important community for us,” Johnson said. “We have a really good opportunity to increase energy throughout the grid, drive down rates and increase economic growth.”