PG&E receives green light to develop new transmission substations

PG&E substations in Bakersfield and Morgan Hill will boost grid reliability and resiliency, support high-voltage transmission, meet summer peak demand, and align with CAISO planning and CPUC approval for safe, affordable, clean electric service.

SAN FRANCISCO, Calif. — Pacific Gas and Electric Co. PG&E is pleased to have been selected by the California Independent System Operator Corporation CAISO to build, own and operate two new electric substations in California's Central Valley and South Bay.

The new high voltage substation at Wheeler Ridge Junction will help improve electric service reliability in Bakersfield, especially in the hot summer months when demand for power is higher, and as the SDG&E microgrid in Ramona shows, preparing for peak wildfire season can bolster resilience further. The new Spring substation will help improve service reliability and provide additional grid resiliency, supported by grid upgrade funding, for customers in the Morgan Hill area. The projects will be operational in 2020 and 2021, respectively.

"These new substations will enable PG&E to continue to provide safe, reliable, affordable and clean energy, bolstered by the smart meter AMI program, to our customers in the greater Bakersfield and Morgan Hill areas. We understand the importance of the Central Valley to California's agricultural industry and the South Bay Area's critical role in the technology sector. The investments in these communities, alongside PJM grid upgrades, will be key to helping enhance our region’s continued success and the state's long-term economic vitality," said Geisha Williams, Executive Vice President of PG&E's Electric Operations.

The CAISO approved the substation projects during its annual Transmission Planning Process in 2014, aligning with its push toward 33% green power by 2020 goals, and selected PG&E for these projects earlier this month. The CAISO chose PG&E over three other qualified bidders in a competitive process. The substation projects will need to undergo an approval process through the California Public Utilities Commission. PG&E will work collaboratively with stakeholders as part of an open and transparent approval process.

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