Why are new power generation facilities needed in the Bay Area?

Along with growth in the economy, the demand for electricity in the Bay Area continues to grow. Furthermore, most of the existing Bay Area power plants were built in the 1950s and 1960s. They are less efficient, more costly to run and produce dramatically more emissions that contribute to smog than do modern facilities like the Metcalf Energy Center. New facilities will bring cleaner, lower-cost electricity to the Bay Area.

Why does Silicon Valley need more electricity?

Silicon Valley has reached its capacity for receiving electricity through existing high voltage towers and transmission lines. As our region and our economy have grown, the need for an increased, stable supply of electrical energy has become a top priority in ensuring economic health and job security in the region.

How will the Metcalf Energy Center address the region's electricity needs?

The Metcalf Energy Center will provide clean, reliable, competitively-priced energy for the San Jose electricity grid, helping to prevent power interruptions that create inconveniences for local residents and productivity losses for employers. Because the site is located near the Metcalf substation, it did not require the construction of costly, inefficient and unsightly transmission towers.

Who will use the electricity that the facility will produce?

The facility provides energy to PG&E's electric distribution system for use in homes and businesses throughout San Jose. Because San Jose is still a net importer of electricity, even after the Metcalf Energy Center came online, the city will still need to import about half its electricity from outside of the region.

Why isn't PG&E generating this power?

PG&E is getting out of the power generation business. Under the electric industry deregulation, PG&E is responsible for delivering energy to customers and for maintaining the infrastructure of the electric distribution system. Many of PG&E's fleet of power plants have been sold to power generation company's, all of whom sell power into the regional electricity grid. Consumers can now choose which company they buy their power from.

Will this system lead to lower energy costs for consumers?

In this competitive power market, the newer, cleaner power facilities will eventually force the older facilities to be retired or repowered. Consequently, consumer energy costs will eventually be reduced only as more efficient modern facilities like the Metcalf Energy Center replace older plants.