PRESS RELEASE: California Approves Power Plan that Protects Coyote Valley
SAN JOSÉ, Calif.—(March 20, 2026)—Santa Clara Valley Open Space Authority (Authority), LS Power Grid California and Pacific Gas and Electric Company (PG&E) today announced the approval of a power plan that will unlock one gigawatt (GW) of electric capacity for the South Bay – enough to power about 600,000 homes—while protecting wildlife corridors in the state-sanctioned Coyote Valley Conservation Program Area (CVCPA). The California Public Utilities Commission (CPUC) has approved a request to collocate a critical LS Power Grid California high-voltage converter station on PG&E’s Metcalf substation property in Coyote Valley, a greenbelt located in Santa Clara County.
Co-locating the new energy infrastructure on PG&E’s existing substation property will eliminate the need for LS Power Grid California to underground more than two miles of lines along Monterey Road and Coyote Creek Parkway, reducing environmental impacts and minimizing disruption to nearby neighborhoods.
“With this constructive solution for essential energy infrastructure, the unique natural and working lands of Coyote Valley – an irreplaceable connection between over 1 million acres of core wildlife habitat across the Santa Cruz and Diablo Mountain ranges – will remain protected,” said Andrea Mackenzie, general manager of the Open Space Authority. “We are grateful that PG&E and LS Power Grid California engaged with us, and we applaud their commitment to move forward in a way that supports—not sacrifices—our shared environmental values and reinforces the state’s commitment to nature-based climate solutions.”
About the Power Santa Clara Valley Project
In March 2023, the California Independent System Operator selected LS Power Grid California to build a high-voltage direct current transmission line and terminals to move power between downtown San José and Coyote Valley as part of the Power Santa Clara Valley Project. This project will improve grid reliability, boost electric capacity to meet current and future demand in Silicon Valley and provide better access to low-cost energy for San José area consumers.
“We strive to find creative solutions where community, environmental and business interests align,” said Casey Carroll, senior vice president of LS Power Grid California. “This agreement demonstrates how smart planning and collaboration can deliver critical energy solutions while preserving conservation landscapes. We’re pleased to work with the Open Space Authority and PG&E on this low-impact, multi-benefit alternative.”
Power Santa Clara Valley’s HVDC terminal was first proposed on a 14-acre orchard in Coyote Valley, between Metcalf Road and Bailey Avenue, near Coyote Creek, one of the few safe wildlife corridors in the valley. Both LS Power Grid California’s Environmental Assessment and the CPUC’s Environmental Impact Report found that co-locating at PG&E’s Metcalf substation would be the “environmentally superior” alternative. Given Coyote Valley's environmental significance, LS Power Grid California and PG&E partnered with the Open Space Authority to assess potential impacts. After working together, all parties agreed that co-location would be a viable option. LS Power Grid California and PG&E have been working extensively to make co-location a feasible alternative.
“This agreement shows what’s possible when we work together for California’s future. By using existing infrastructure, we’re powering the future, meeting climate resilience goals and building a more sustainable and affordable energy system for our customers,” said Craig Degenfelder, PG&E vice president of major projects.
“San José must have reliable energy to power jobs, housing and innovation, but we shouldn’t pit those goals against environmental stewardship,” said San José Mayor Matt Mahan. “This agreement proves we can have both. By co-locating new energy infrastructure at an existing site, our partners found a smarter, faster, and lower-impact solution that protects Coyote Valley while strengthening our regional grid and fueling future growth and opportunity.”
The CPUC approved the final location of the terminal on March 19, 2026.
About Coyote Valley Conservation Program Area
The 17,200-acre Coyote Valley Conservation Program Area was established by the State of California through State Assembly Bill (AB) 948 in 2019. This remarkable natural and rural landscape is located at the narrowest point between the Santa Cruz Mountains to the west and the Diablo Range to the east, the valley serves as a critical landscape linkage for the region’s wildlife, connecting over 1.1 million acres of prime habitat in the mountain ranges. The valley itself is notable for its unique valley floor habitats, wildlife, scenic beauty, recreational areas, farmland and water resources.
“California’s natural and working lands are essential to climate resilience, wildlife connectivity and quality of life,” said California Natural Resources Agency Secretary Wade Crowfoot. “This collaborative solution in San José will strengthen the region’s electrical grid while protecting essential natural infrastructure and conserving biodiversity. Partnerships that are grounded in strong environmental safeguards, science and community input are how we deliver reliable energy infrastructure without trading away the natural places Californians cherish."
For high resolution photos or map, email authority@landispr.com or access here
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About the Santa Clara Valley Open Space Authority
The Santa Clara Valley Open Space Authority conserves the natural environment, supports agriculture, and connects people to nature, by protecting open spaces, natural areas, and working farms and ranches for future generations. Since 1993, the Authority has protected almost 30,000 acres of open space, natural areas and working lands, watersheds, and wildlife habitat – providing ecologically friendly outdoor recreation and preserving the natural beauty and environmental health of the Santa Clara Valley. For more information, please visit openspaceauthority.org.
About LS Power Grid California/LS Power
LS Power Grid California is an electric transmission utility in the state of California that provides reliability and resiliency for the electric grid and enables the flow of energy from efficient and diverse generation sources. LS Power Grid California is an affiliate of LS Power, which is not regulated by the California Public Utilities Commission. 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.
About PG&E
Pacific Gas and Electric Company, a subsidiary of PG&E Corporation (NYSE: PCG), is a combined natural gas and electric utility serving more than sixteen million people across 70,000 square miles in Northern and Central California. For more information, visit pge.com.
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