Coachella power capacity concerns raise bigger questions about valley growth

COACHELLA, Calif. (KESQ) - Plans for 30 new electric vehicle chargers at Rancho Las Flores Park are off the table as the City of Coachella scales back a major expansion project, with city leaders pointing to both cost and limited access to power.

But the decision is raising a much bigger question for one of the fastest-growing areas of the Coachella Valley: Does the city have enough power for what it wants to build next?

Coachella Mayor Frank Figueroa told News Channel 3 that the planned chargers were removed from the park project because of a combination of costs and access to electricity.

“I think, you know, that presentation earlier this week, it was a mixture of both costs and I think electricity, electrical access,” Figueroa said. “And I know that we have low capacity.”

The issue comes as Coachella studies where additional public EV chargers will be needed as electric vehicle use grows.

Figueroa said adding those chargers depends on first making sure the electrical system can support them.

“We can't really proceed with that until we resolve our power access and ensuring that we have those substations and infrastructure there, then we can talk about EV charging,” Figueroa said.

The data center connection

The power issue also adds another layer to Coachella's recent fight over data centers.

Earlier this year, the city had an agreement with Stronghold Power Systems tied to a proposed technology campus and the development of Coachella's municipal electric utility.

Under those plans, the proposed data centers were expected to become large initial customers of the municipal utility, while Stronghold would play a role in developing the electrical infrastructure needed to serve the project and support the utility's buildout.

The city terminated its agreement with Stronghold in June following months of community opposition and later approved a permanent prohibition on data centers.

The data center proposal went away, but Coachella's need for additional electrical infrastructure did not.

Figueroa said the city's ability to continue attracting development will depend on addressing that need.

“Economic development and growth in our city is going to be tied to the energy infrastructure, which we're working on,” Figueroa said. “We're working to move forward with IID. We have a joint powers authority. We're moving forward with that.”

In March, IID and Coachella formed the Coachella Electric Financing Authority, a joint powers authority designed to help finance electrical infrastructure improvements as the city grows.

The authority provides a framework for the city and IID to identify needed projects and pursue financing for those improvements.

Could power affect housing growth?

The implications could extend beyond EV charging.

Figueroa told News Channel 3 that a new housing community coming online could, for now, be among the last developments able to move forward based on available power access.

Mayoral candidate Jesus Kino Gonzalez also pointed to the power grid as a major issue facing the city.

“The reality right now in the City of Coachella is that our grid is at maximum capacity,” Gonzalez said. “So even if a development wanted to come into the city, it currently can't. So I think that that's a major issue because we need to develop the city to raise our tax base.”

IID's response to News Channel 3 adds important context to that characterization.

The utility says there is no single threshold determining whether another project can be served. Instead, IID says a project's impact depends on how much electricity it needs, where it would connect and how much capacity is available nearby.

IID says it studies proposed projects individually before determining whether upgrades are necessary.

Gonzalez told News Channel 3 he believes the city should work with other government agencies to expand electrical infrastructure while avoiding additional costs for residents.

News Channel 3 also reached out to the other candidates for Coachella mayor and had not received responses by the deadline for this story.

How much power could a data center need?

IID's newly approved Large Load Tariff applies to customers requesting at least 20 megawatts of electricity, although the utility says some proposed projects could require considerably more.

For comparison, IID told News Channel 3 demand from all of its customers combined reached 1,126 megawatts at this year's summer peak.

IID says that does not mean every large project can automatically be connected to the system.

Even if a data center or other large customer agreed to pay for all of the infrastructure needed to serve its project, IID says payment alone would not determine whether the project could move forward.

The utility would first evaluate the project's electricity needs, available power supply, capacity on the electrical system and any improvements necessary before deciding whether reliable service could be provided.

Who would pay for the upgrades?

That's also where IID's new Large Load Tariff comes in.

IID's Board approved the tariff on Sept. 15 amid growing interest from projects requiring very large amounts of electricity.

Under the tariff, a qualifying large customer would be responsible for electrical infrastructure needed to serve its project.

Depending on IID's studies, that could include construction of new facilities or upgrades to the existing electrical system.

The customer would also be responsible for the costs and financial risks of securing the electricity needed for the project.

IID told News Channel 3 the goal is to prevent those project-specific costs from being shifted to its existing customers.

“IID's new tariff requires large customers to bear the costs and financial risks associated with their projects, rather than shifting those project specific costs to existing customers,” the utility said in a statement to News Channel 3.

California adds new data center rules

IID's changes come as California is also implementing new rules governing data centers.

Gov. Gavin Newsom signed a package of data-center legislation this week addressing issues including electricity, water use, infrastructure and costs to ratepayers.

IID approved its Large Load Tariff before the new state laws were signed.

The utility told News Channel 3 its tariff already requires qualifying large customers to bear the costs and financial risks associated with serving their projects.

IID says it is now reviewing the new state laws to determine whether they create any additional requirements for the utility.

Are more large projects coming?

IID confirmed to News Channel 3 that it has received inquiries from prospective large-load customers, but the utility would not identify individual projects.

IID emphasized that its role is limited to determining whether it can provide electric service under its Large Load Tariff.

Whether a data center or another development can actually be built at a proposed location is ultimately decided by the city or county with jurisdiction over the project.

For Coachella, that distinction is especially important.

The city has prohibited data centers within its boundaries, but its need for additional electricity and infrastructure remains as leaders plan for more housing, businesses and electric vehicles.

The question now isn't only how much Coachella wants to grow, but what it will take to power that growth.