SDG&E wants to build a new transmission line. Will it get the OK? And how much will it cost ratepayers?

by Rob Nikolewski

San Diego Gas & Electric on Friday announced plans to build, own and operate a new  transmission line that would run about 100 to 150 miles, going between an existing substation in Imperial Valley to the San Diego-Orange County border.

SDG&E would need to acquire the necessary permitting from state and federal bodies, including the California Public Utilities Commission, to proceed.

The project does not yet have a price tag, so it’s not known how much it would increase the monthly bills paid by SDG&E customers — should it clear all the regulatory hurdles.

SDG&E officials have dubbed the 500-kilovolt line the Golden Pacific Powerlink and say the project would boost transmission capacity across the region, thus reducing costs associated with congestion on electric power lines.

The proposed pathway was identified in the 2022-2023 transmission plan by the California Independent System Operator as one of 45 transmission projects aimed at helping California reach its renewable energy goals. The system operator, known as the California ISO, manages the electric grid for about 80% of the state.

California policymakers want the state to derive 100% of its electricity from carbon-free sources by 2045, if not sooner.

SDG&E President Scott Crider, in a news release, called the Golden Pacific Powerlink “vital.”

“We must continue to strengthen our energy grid to meet the growing demand for electricity in the Southern California region and to advance the state’s clean energy goals — all while keeping affordability front and center,” Crider said.

If the transmission line receives the requisite approvals and permits, SDG&E officials hope construction will start in 2029, with a target in-service date of 2032

SDG&E plans on submitting a formal request to the CPUC next year. Once that’s done, it will trigger a lengthy process of filings and input from SDG&E, consumer groups, ratepayers, environmental organizations and any affected governmental agencies before a final determination of the project’s fate is made.

The exact route of the Golden Pacific Powerlink is still to be determined, but SDG&E envisions the line running from a substation the utility operates outside El Centro to San Onofre, where San Diego and Orange counties meet.

While SDG&E has not attached a dollar figure to the proposal, the cost of the 117-mile Sunrise Powerlink — completed in June 2012 — came to $1.9 billion.  Spending on large transmission projects are shared across the state, and SDG&E ratepayers funded about 8% of the Sunrise Powerlink, which also uses the Imperial Valley substation.

SDG&E officials said Friday that the estimated customer cost impact from the Golden Pacific Powerlink would come to about 9%, based on current data.

The Sunrise Powerlink has been described as one of the most scrutinized transmission projects in state history. The line went through an exhaustive environmental review that took five years and then about 18 months of construction before it was completed.

Given complaints from SDG&E customers about the high monthly bills they pay, the cost implications of the Golden Pacific Powerlink proposal will certainly prompt debate. SDG&E typically posts the highest rates in the state, if not the entire U.S.

“Having transmission lines to get to the future power supply that’s 15 years out is going to be critical,” Kevin Geraghty, chief operating officer at SDG&E, said in an interview Friday with the Union-Tribune. “Yes, there’s an additional cost, but the cost associated with things like rolling power outages and not achieving the state’s climate goals have significant costs as well.”

The Protect Our Communities Foundation, an environmental and consumer organization based in San Diego, was one of the groups that opposed the Sunrise Powerlink. They see parallels to what’s being proposed now.

“Private monopoly utilities like SDG&E make their best profit building high voltage transmission lines, whether they are needed or not,” Protect Our Communities Board member Bill Powers said in an email.

“The project is being justified as needed largely to import remote renewable energy,” Powers said. “The cheapest renewable energy is local solar power that does not require a multi-billion dollar extension cord like Golden Pacific Powerlink to reach customers. Prioritize local solar power and the justification for the Golden Pacific Powerlink disappears.”

SDG&E officials say the Golden Pacific Powerlink would be integrated into the company’s wildfire safety program. Since 2007, when fires ravaged large swaths of San Diego County, SDG&E has spent roughly $6 billion in ratepayers funds to reduce wildfire risk, and the company’s mitigation programs are considered state-of-art among utilities.

Since the proposed high-voltage line deals with transmission and distribution, the costs would also be shared by customers enrolled in the two community choice energy programs in the San Diego area —the Clean Energy Alliance and San Diego Community Power.

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Andre Hobbs

Andre Hobbs

San Diego Broker | Military Veteran | License ID: 01485241

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