Palo Alto's Finance Committee unanimously recommended that the City Council authorize up to $100 million in electric revenue bonds, which would be the city electric utility's first.
Why it matters: The money would start a grid overhaul that staff estimate at $300 million to $400 million over eight to 10 years, as more residents switch to EVs and electric homes.
What it pays for
Staff pointed to replacing aging transformers, improving switching between substations and cutting outages caused by equipment failures. The city has already spent about $28.7 million on eligible projects, according to a meeting summary from Sundays.
Guardrails on cost
The Utilities Advisory Commission earlier backed the plan on the condition that borrowing costs produce no more than a one-time 1% increase over the electric-rate forecast. Staff said the city could sell less, possibly about $85 million, if market conditions made a full sale too costly.
What's next
The plan goes to the City Council. Staff expect to seek credit ratings in December and are aiming for a bond sale in mid-January 2027.