Milestones – Power to the People! – Opinion

Kilowatt hour electric meters, power supply meters. 3d rendering

There are always issues and that’s the nature of business, politics and life.

Even something as popular as the city owned electric company isn’t free from thorny issues, though they may be less obvious. On the outside, residents benefit. Because the City owns its power company, Santa Clara provides electric power to residents at a significant discount versus what PG&E customers pay just across Stevens Creek Boulevard.

This has been one of the primary attractions in Santa Clara for decades, as businesses and residents have benefitted from lower power costs. It has also been a primary attraction for major companies to move to, and stay in Santa Clara. Especially since these industrial giants use huge amounts of power.

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But below the surface, there seems to be a new wrinkle developing. As you may have noticed, the number of server farms to power the cloud have been increasing along Central Expressway and in other parts of the City. These farms use a majority of the City’s power while contributing little to the City by way of the business tax. Most server farms have few employees and so the taxes levied against them are negligible.

But what if these server farms are getting an added benefit? Rumor has it that in recent months “deals” have been made to new Silicon Valley Power clients that offer lower rates than the actual cost of the power. If this is true, it becomes a serious reversal. It means that current customers, including residents, become subsidizers of these new customers.

If you examine Santa Clara residential and corporate power rates, they appear to be about 40% less than PG&E. This should be reason enough for many power hungry companies to locate in the City.

But for the first time in years, SVP has requested and received approval for a mid-year rate hike. This is on top of the rate hike that occurred at the start of 2023. While not a smoking gun, it seems to point to more than just the skyrocketing natural gas prices City staff pointed to when explaining the most recent rate hike. Could it be that residents are already beginning to subsidize these new customers?

If so, then the council needs to examine the policies and procedures of SVP, including the rate structure to assure the competitive rates benefit both residents and businesses. Not one over the other.

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View Comments (9)

  • Miles,
    .
    Are you the publisher of a newspaper or a gossip columnist? Why are you speculating about rumors that you have supposedly heard? Have your reporters report the news. SVP is a public utility so it is not hard to investigate and substantiate rumors or dismiss them as just rumors.

    • Simply put, almost anybody is more intelligent than you. Miles has insight. You have hatred. You're a self-identified leftist who has a poor school record. Grow up. Oops. Sorry. You've proved you can't.

      • Jim,
        .
        "There seems" and "but what if" and "rumor has it" is not insightful news reporting or even opinion writing.
        .
        And I do not hate Miles I simply think his "Milestones" are an embarrassment even to a newspaper that is known as a matter of public record to carry water for the Forty Niners and certain politicians.
        .
        And your ad hominem would be insults aimed at me are childish and insipid. Actually a schoolchild could be more insightful and more effectively insulting.

        • Buscher Alum-hole,
          Look, fellow. This is Miles’ website. He can use as many “There seems”, “but what if”, and “rumor has it” as he wants. If his “Milestones” have no appeal for you, just go else where. You should be glad that he allows your stupid comments to be listed here. Stop acting “delusional” like a “big shot” and “know-it-all”. As for your “ad hominem” directed at Jim and Miles, I find them both “childish and insipid”. Allow me to use your same language and direct the same insults towards you: “Actually a schoolchild could be more insightful and more effectively insulting”.

  • Buchser 2,
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    Yes indeed it is Miles publication and he can embarrass himself with what he publishes as "Milestones" as much as he likes. Such as when he writes columns like this one that is pushing conclusions he has made based on his conjecture and rumors. If you think that is an ad hominem attack against him you should look up "ad hominem."
    .
    You are free to ignore my comments if you do not like reading them. I will be writing comments whenever I feel like writing them for as long as there is a public comment box.

    • Buchser Alum-hole,

      Ok, you don’t like my comments. Well, Jim and I don’t like your comments either.
      The definition of “ad hominem” is an attack aimed at an opponent that is irrelevant to the argument.

      Many of your earlier posted comments are also outright ridiculous. Here’s a recent example:
      (Buchser Alum-hole): You stated –“Indeed only someone (Miles) who is trying to write an advertisement for Levi’s stadium would declare it one of the best stadiums in the country. Nobody honest and knowledgeable would even rank it in the top 10 of NFL stadiums.” —

      Well, as you are aware, Mr. Buchser Alum-hole, the NFL biggest event every year is their “Super Bowl”. As you are also aware, they have chosen to hold this event at Levi’s stadium during upcoming year 2025. This was actually the second time Levis has been selected for this event. Obviously, the folks at the NFL do not agree with your bias opinion. But then, of course to you, they are “Nobody honest or knowledgeable”. How dumb and stupid.

      • Buchser 2,
        .
        You and Jim have made your opinion on my comments clear and they are basically comments on how you seem to feel about me personally. I do not have any feelings about your comments. This is America and you should voice whatever opinions you want to voice.
        .
        I have not been kind to Miles but my comments on his columns have not been ad hominem. It is not an ad hominem attack to point out that nobody honest and knowledgeable would even rank Levi's in the top 10 of NFL stadiums. The fact that it has been chosen to be the host stadium for the Super Bowl does not make it a top 10 stadium in the NFL.
        .
        Go try and search for ranked lists of best stadiums in the NFL. You will see what I have seen which is that Levi's is not considered one of the best stadiums in the NFL. I have yet to see it ranked in the top 10 of league stadiums.
        .
        ESPN rates it number twenty.
        https://www.espn.com/nfl/story/_/id/29372091/ranking-nfl-stadiums-1-28-lambeau-leap-dc-disaster
        .
        USA Today ranks it number thirteen.
        https://ftw.usatoday.com/lists/nfl-stadium-rankings-2022-best-venues-football
        .
        Sporting News ranks it number twenty.
        https://www.sportingnews.com/us/nfl/list/ranking-nfl-stadiums-from-worst-to-best/dky07jdst5w1mcy7cgsm7q6s
        .
        The Athletic polled NFL reporters who ranked Levi's number twelve. And this was before the opening of SoFi in Los Angeles and also the Raiders stadium in Las Vegas.
        https://theathletic.com/1914198/2020/07/07/expert-nfl-stadium-rankings-breaking-down-the-leagues-top-bottom-five/
        .
        Ranker which seems to be a site that ranks based upon viewer voting has it as number seventeen.
        https://www.ranker.com/list/best-nfl-stadiums/sportsyeah
        .
        I could go on but I think you get the idea now. That is why I said what I said. I welcome you to try to find more rankings of NFL stadiums that have Levi's in the top ten. From what I have seen it is a challenge to find any.

        • Buchser Alum-hole,
          Sorry, but the owners and management at the NFL are also honest and knowledgeable and they have agreed that Levi’s stadium is where their “Super Bowl 2025” is to be held. Obviously, location plays a big deal as to what is considered “best”. A million dollar home in Santa Clara may lose a great deal of appeal if it where located elsewhere. So, in the minds of the NFL, for their purposes, Levi’s stadium would definitely qualify as being among the 10 best stadiums in the country. Their actions speak louder than words of all the articles you’ve listed.

        • Buchser Alum-hole,
          Incidentally, there is another matter with you that I find disagreement. Your derogatory comments were indeed ad hominem to both Miles and Jim. I suggest you look up the definition yourself and make the proper interpretation.