I. RECOMMENDATION:
This for information only as this requested as a future agenda item by Councilman Adkisson. There is no staff recommendation as it is information only.
II. BACKGROUND:
PG&E has been advising applicants that power availability is limited for larger industrial projects especially the indoor cannabis operations who demand a significant amount of power. This has lead to delays in construction due to lack of power for these facilities, however, PG&E is currently working on a significant expansion project (new bank) at the Coalinga #2 substation on Merced to increase power availability to the City and surrounding areas but this is not expected to complete until mid-2024.
Recently, informal communication from PG&E has confirmed a more significant capacity issue beyond that of just the larger industrial type users. There was an application that was submitted for 53 new homes which was initially denied by PG&E to provide power, however, they have sense confirmed that they will be able to serve their development after internal discussions and analysis.
At this time, no formal communication has been received via email or mail from PG&E about this issue as it relates to possible moratoriums and/or significant capacity issues. It has all been informal communication with PG&E staff on a project specific basis or as the issue arises.
III. DISCUSSION:
The current capacity issue is being addressed by PG&E however, staff will continue to keep open dialog with PG&E and the development community to ensure that power is available for future development as the City looks to grow and expand its footprint.
Staff will continue to keep the Council updated on the capacity issue and advise if further action needs to be taken and/or warranted.
IV. ALTERNATIVES:
None at this time, this is for information only.
V. FISCAL IMPACT:
None. |