Improved San Jose-PG&E relations may lead city to abandon its own power utility plans

Improved relations with PG&E could lead San Jose officials to drop the proposal for a city-owned power utility despite unanimous support from City Hall.

As San Jose plans for growth to the north and downtown areas, Deputy City Manager Kip Harkness said in a recent memo that breakthroughs in talks with power giant PG&E could eliminate the “desirability” of a city-run utility, or San Jose Power. That option involves searching for a private developer-customer willing to fund infrastructure costs in exchange for long-term access to lower electricity rates.