$2 billion investment to boost grid reliability across Alameda and Santa Clara counties

SAN JOSE, Calif., May 20, 2026 /PRNewswire/ — LS Power Grid California recently broke ground on the Power Santa Clara Valley and Power the South Bay projects and held ceremonies today in San José and Fremont to mark the start of construction. The company’s $2 billion investment in three transmission projects in the Bay Area will strengthen grid reliability, support economic development and expand access to efficient energy resources across Alameda and Santa Clara counties.

LS Power CEO Paul Segal said, “It’s an exciting step to help support the Bay Area’s economic growth, power-reliability needs and state energy goals. With the start of project construction, we are at the forefront of driving innovative solutions and making important infrastructure investments to meet domestic energy expansion needs. We are proud to play a role in building California’s energy backbone.”

The Power the Bay projects will be capable of transmitting 1,000 megawatts (MW) of electricity (the equivalent of serving approximately 750,000 homes), will generate more than $650 million in local and state tax revenue to be used to fund essential services over the coming decades, and will create around 300 union jobs during construction.

LS Power President of Development Paul Thessen said, “LS Power Grid has a growing national footprint, with more than 20 high-voltage transmission infrastructure projects completed or in development across 5 market planning regions and 9 states. Since 2020, LS Power Grid California has received 7 competitive transmission awards from the California ISO totaling more than $2.5 billion – including our most recent award for a 7-mile underground transmission line connecting the two Power the Bay projects. These awards reflect how competition in transmission planning drives cost control and schedule accountability.”

Project Details
The Power Santa Clara Valley Project will use advanced high-voltage direct current (HVDC) technology – rare in the U.S. – to connect two new terminals (Skyline and Grove) in San José via a new 12-mile underground line. This HVDC technology will provide more controllability of power flows and flexibility to the state’s grid operator to meet the growing and ever-changing demands of the grid.

The Power the South Bay Project will add a new 12-mile, 230-kV transmission line – partly overhead, partly underground – linking the existing power system in Fremont and Santa Clara to create a new high-capacity connection.

LS Power Senior Vice President of Development Casey Carroll said, “These projects use some of the most advanced grid technologies available, designed to meet California’s reliability needs today and into the future. We appreciate the collaboration from local and state authorities in reaching this milestone.”

Community Benefits
Since 2023, the Power the Bay projects have donated over $150,000 to local causes, reflecting the company’s ongoing mission to support local communities where projects are located. Power the South Bay also made a $2.5 million upfront payment to the City of Fremont for the use of city-owned property to support project construction, which in turn, will help support the new community center in Fremont’s Central Park. In addition, both projects will pay annual franchise fees to the cities of San José, Fremont and Santa Clara as part of LS Power Grid California’s development commitments.

San José Mayor Matt Mahan said, “These projects are helping upgrade the grid to meet growing demand for electricity while keeping affordability top of mind for ratepayers. These upgrades will improve the grid’s reliability to serve all electricity users, which means cleaner power at lower costs for all San José residents. That’s the kind of win-win we want as we invest in infrastructure to keep the jobs of the future in the capital of Silicon Valley.”

Fremont Mayor Raj Salwan said, “The groundbreaking represents the power of strong partnerships and a shared investment in our region’s future. Our work with LS Power is helping facilitate the delivery of critical energy resources to our city and the greater Bay Area while also advancing key broadband investments in Fremont and supporting the construction of our new Central Park Community Center – showcasing what is possible when public and private sectors come together with a shared vision.”

Santa Clara Mayor Lisa Gillmor said, “Santa Clara has always led on clean, reliable energy, and it’s in our DNA as home to Silicon Valley Power. These LS Power Grid California transmission projects strengthen the grid that powers our residents and businesses, meet the region’s growing energy demands, and are exactly the kind of public-private partnership that delivers lasting value. I’m proud to welcome this investment to Santa Clara.”

Background
In 2023, the California ISO selected LS Power Grid California to finance, construct, own, operate and maintain the Power the Bay projects through competitive selection processes conducted pursuant to FERC Order No. 1000. LS Power Grid California was chosen from 5 qualified proposals for Power Santa Clara Valley and 6 for Power the South Bay as the developer best positioned to deliver the projects cost-effectively and reliably. In 2026, the California ISO selected LS Power Grid California for another Bay Area transmission project, the Power the Valley Connector Project, from 5 qualified proposals due to strong cost containment that limits both schedule and cost risk to ratepayers.

By 2030, LS Power Grid California expects to have a number of transmission projects placed into service across the state. The company’s Orchard Substation was energized in 2025, providing critical operational reliability for the San Joaquin Valley power grid, and the Fern Road Substation is expected to come online in 2026.

About LS Power Grid California
LS Power Grid California is an electric transmission utility in the state of California that provides reliability and resiliency for the electric grid and enhances efficient access to generation resources. LS Power Grid California is separate from its affiliates, LS Power and LS Power Grid, which are not regulated by the California Public Utilities Commission. For more information about the Power the Bay projects, visit powerthebay.com.

About LS Power
LS Power is a premier development, investment and operating company focused on the North American power and energy infrastructure sector, with leading platforms across generation, transmission and energy expansion solutions. Through its transmission business, LS Power Grid, the company has built 780+ miles of high-voltage transmission systems with another 400+ miles in development. For more information about the company’s transmission business, please visit lspowergrid.com.

Media Contacts:
Canyon Snow on behalf of LS Power at devdavis@canyonsnow.com.
Contact LS Power directly at media@lspower.com.

 

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SOURCE LS Power