PG&E reverses decision environmentalists say threatened wildlife in San Jose’s Coyote Valley
The Big Picture
Pacific Gas and Electric Company agreed to relocate a major South Bay transmission project to land adjacent to the existing Metcalf Substation, abandoning earlier plans to build on agricultural land in Coyote Valley.
The shift follows more than a year of pressure from environmental groups, elected officials and state agencies. The project, led by LS Power, will still deliver a 13-mile transmission line and about 1,000 megawatts of new capacity, but with significantly reduced environmental impact.
Why it Matters
This is a turning point in how large infrastructure projects get sited in California.
The original proposal showed how quickly open space can become a target when infrastructure demand rises. The outcome shows something different: coordinated pressure can force better siting decisions that protect critical landscapes without derailing projects.
There’s also a bigger signal here for Silicon Valley. The driver behind this project isn’t theoretical. It’s real demand from electrification, population growth and AI-related energy needs.
The takeaway is straightforward. We are going to build a lot of energy infrastructure in the next decade. The question isn’t whether it gets built. It’s where. And this decision makes it clear that building on existing sites is going to be the standard stakeholders push for going forward.