
In a surprising turn of events, Palo Alto's ambitious $300 million electric infrastructure upgrade is taking a detour to benefit corporations at Stanford Research Park, including Tesla's upcoming engineering headquarters. The city's initial plan of prioritizing residential neighborhoods with overhead wires has pivoted towards a $24 million substation overhaul at 3350 Hanover St., proposed by Tesla. The partnership, subject to City Council approval on Jan. 16, aims to replace aging transformers and enhance the power distribution network.
If approved, Tesla will collaborate with the city to rebuild the substation, with each party contributing $12 million. The project, spearheaded by Tesla, aims to replace existing transformers, ensuring reliability and meeting the power demands of Stanford Research Park. Notably, the accelerated timeline sets a stark contrast to Palo Alto's typically methodical infrastructure approach, with Tesla targeting completion by April 2024.
The proposal allows Tesla an unusual level of involvement, leading the design and construction, with the completed substation eventually becoming city-owned. Tesla, not only covering additional project expenses but also paying for an expedited timeline, anticipates a monthly fee arrangement with the city, securing 11,200 kVA capacity. The city, in turn, benefits from Tesla's financial contribution and expertise in utility projects, aligning with its broader grid upgrade goals for clean electricity.
As Palo Alto's Utilities Department plans a comprehensive grid overhaul from 2024 to 2032, this unexpected partnership with Tesla not only expedites crucial infrastructure updates but also symbolizes the company's continued local impact despite relocating its headquarters to Texas in 2021.
Source: paloaltoonline.com