PG&E tells some Sonoma County projects that power connections could take up to 18 months
Construction has begun on the fourth of five planned warehouses in a 380,200-square-foot project near the entrance to the Sonoma County airport, but an electrical connection for it may take up to 18 months.
That’s what the general contractor on the approved Billa Landing project said he heard from Pacific Gas & Electric Co. when seeking a substantial power upgrade for tenant improvements at a recently built 70,300-square-foot warehouse at 1740 Copperhill Parkway and when prepping to build a same-sized building next door.
The San Francisco-based utility that serves Northern and Central California told the builder last year to look for ways to reduce the power consumption on the existing Copperhill structure, called Hangar J in the project, according to Craig Nordby, CEO of Nordby Construction.
“They said they did not have enough power at the substation and distribution lines to approve such a project,” Nordby said. “That caused us some pretty grave concerns, because we have more buildings to build up there.”
When the contractor early this year put an initial inquiry in about basic warehouse-scale power service for the planned new building, Hangar K, he said the utility told him no more power would be available.
PG&E confirmed there are delays on electrical and gas connections in the region but declined to specify where the problem existed, how extensive it is or how long it will take to resolve.
“Yes, we are informing some business customers, including a select number in the North Bay, of some changes to construction timelines for new gas and electric service connections,” a spokesperson told the Business Journal in an email. “Presently, requests for new gas and electric service connections are outpacing our forecasted demand for this year. Additionally, available resources to meet the growing demand are challenged by global supply chain issues and rising inflationary costs.”
The utility’s supply problems are wider than the North Bay, according to an independent monitor’s report to California energy industry regulators. Denver-based Filsigner Energy Partners pointed to internal documents that warn of a shortage of spare parts and equipment that is “widespread and unprecedented,” NBC Bay Area reported.
The energy company told the Business Journal it handles new-connection requests on a “first-ready, first-served basis.” Projects that are “construction ready” — completed all needed inspections and pre-construction work — are entered into the utility’s job queue.
Nordby said the utility told the project team that the substation and distribution line upgrades necessary to supply more power to the area, one of Sonoma County’s most concentrated warehouse/light industrial districts, are expected to be completed around mid-2024. The contractor has been exploring co-generation and alternative energy solutions to reduce building consumption.
The Billa Landing project is in the master-planned Westwind Business Park, in an unincorporated area south of Airport Boulevard and east of North Laughlin Road.
Sonoma County’s planning and building department has heard of this problem with utility provisions, typically a requirement for certificates of occupancy for residential and commercial structures, according to agency spokesman Bradley Dunn.
“Ensuring utility provision is essential to development,” Dunn said. “For projects and programs that create jobs, provide housing, and other community benefits, utility-provision delays are concerning. If a utility provider is inconsistent with communication, it can create uncertainty and undermine critical investments in our community.”
Jeffrey Wilmore, a commercial real estate agent with Keegan & Coppin Co. Inc., is marketing nearly 9 acres of land near the airport. Wilmore said he heard from a PG&E regional manager about a similar June 2024 timeframe for more power to become available.
Keegan & Coppin agents Danny Jones and Dave Peterson have been marketing Billa Landing.
The Business Journal reached out to other developers and contractors with projects in the airport area to see if they also have encountered utility-connection challenges, but those inquiries weren’t answered by press time.
Jeff Quackenbush covers wine, construction and real estate. Before coming to the Business Journal in 1999, he wrote for Bay City News Service in San Francisco. Reach him at jquackenbush@busjrnl.com or 707-521-4256.
