Committee recommends PUC/CAISO operations agreement for Bay Corridor project; no city cost reported

The Budget and Finance Committee on April 6 recommended that the full Board approve an operations agreement between the Public Utilities Commission (PUC) and the California Independent System Operator (CAISO) so the PUC can operate the Bay Corridor Transmission Distribution Project (BCTD) and the Davidson Substation within the CAISO‑controlled grid.

Ramona Bueng, deputy manager for PUC Power Enterprise, told the committee the agreement establishes operational communications and rights needed for the PUC to participate in the CAISO grid; she described the agreement as an operational requirement with no direct fiscal obligation to the city.

The PUC said the project was funded by city enterprise departments and estimated the construction cost at about $130 million. The department reported the construction is in the early stages. "This is an operational agreement mainly required so that we can communicate with the CAISO," Bueng said.

Supervisor Marr asked whether the interconnection would let PUC avoid interconnecting through PG&E’s higher‑voltage transmission system for some customers; Bueng said the PUC can directly interconnect lower‑voltage customers within limits, which may ease certain customer connections but does not resolve all higher‑voltage interconnection challenges with PG&E.

Chair Ronan moved to forward the resolution with a positive recommendation; the motion passed by roll call with three ayes (3–0).

What’s next: The agreement will be considered by the full Board; the PUC said the BCTD is intended to increase the city’s operational independence within the regional grid.