Riling PG&E, San Jose approves its own electric utility, will study feasibility

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Riling PG&E, San Jose approves its own electric utility, will study feasibility
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Project will either move forward or be dropped over the next three years depending on feasibility, according to Councilmember David Cohen

In a major shake-up of the South Bay’s energy landscape, the San Jose City Council on Tuesday officially approved the creation of a city-run electric utility in response to Pacific Gas & Electric’s questionable track record and demand for more power supply — a decision that could become one of its most consequential this year.

But with potentially tens to hundreds of millions of dollars on the line, the plan is getting major pushback from PG&E and the regional electrical workers’ union IBEW 1245, which argue that the city doesn’t have the required skillset or capital to get a utility up and running.“This is potential competition for PG&E in new installations,” Cohen said in an interview. “I assume they don’t want competition. The workers like working for PG&E. They want PG&E to be the sole provider.

“I still believe we would benefit from having an alternative for new, large developments,” said Cohen. “But we would have to make sure, before we move any further, that that would be cheaper for those customers.” On Tuesday, union members also expressed concerns over jobs being threatened by the utility, though councilmembers promised to include them in decisions going forward.

As the city shifts towards more renewable energy systems, like installing electrical vehicle chargers, there’s a need to increase power capacity. State estimates expect the doubling of electricity usage by 2045 or 2050, said city officials.

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