The City Council deferred a proposed 4% electric rate increase for all classes of customers until further analysis is completed on how costs are distributed and charged to different customer segments. The decision, which passed unanimously with a deferral pending a detailed Cost of Service study, reflects ongoing concerns about the fairness of rates paid by residential versus industrial users.
Council Approves Super Bowl LVI Field Agreement
In addition to the rate increase debate, the City Council approved an agreement to lease two soccer fields during the NFL Super Bowl LVI operational support. The agreement includes $1.2 million in community benefits for field refurbishment and stipulates third-party inspections before and after usage to ensure proper conditions are met.
Public Concerns Over Rate Increases
The 4% rate increase was proposed by Silicon Valley Power (SVP) as necessary to cover increased operational and maintenance costs, including renewable energy purchases and infrastructure expansion. However, the public hearing saw significant debate over equity in how rates are distributed among residential customers compared to large industrial users like data centers.
Councilmember Jain criticized the 4% increase as being too high given current inflation levels. She proposed deferring the decision until a Cost of Service study could be conducted. In response, Jain argued that the existing rate increases would overcharge residents and subsidize costs for large commercial entities such as data centers. Councilmember Hardy similarly questioned the methodology used in determining the rate increase, particularly regarding load development fees paid by large customers like data centers.
City Manager Albert Gonzalez acknowledged the need for transparency but noted that the proposed cost increases were necessary to maintain bond ratings and build reserves. Despite this support from staff, the council deferred the decision pending a full Cost of Service study which aims to provide more insight into how rates are set and distributed across different customer segments.
Super Bowl Field Agreement Details
The agreement with NFL Super Bowl LVI operational support includes the use of two soccer fields (Fields Two and Three) during seven weeks. The city will provide a $1.2 million community benefit through field refurbishment to ensure minimal disruption for youth soccer groups using nearby facilities. The council agreed to include third-party inspections before and after Super Bowl usage to guarantee proper conditions are met.
Mayor Gillmor, supported by Councilmember Cox, moved the motion with unanimous approval. Maria emphasized the importance of protecting fields for future use, while Leah suggested converting Field Two into synthetic turf to increase practice time availability. Councilmember Jain underscored concerns regarding field quality and requested third-party inspections before and after Super Bowl usage.
The $1.2 million community benefit is guaranteed as a minimum, with additional benefits potentially available through enhanced facilities. Plans include relocating displaced teams to alternative spaces like Curtis Field or Reed Grant Park while ensuring the synthetic turf has additional life left on it.