On January 28, 2026, Silicon Valley Power (SVP) Electric Utility Director Nico Procos testified before the California State Assembly’s joint oversight hearing of the Utilities and Energy Committee and the Privacy and Consumer Protection Committee on the energy impacts of artificial intelligence (AI) and the rapid growth of data centers across the state.

During his testimony, Nico addressed one of California’s most pressing challenges: how to meet unprecedented electricity demand driven by AI and data centers while continuing to deliver reliable, affordable, and sustainable power for residents and businesses. He shared how Silicon Valley Power has been planning for this moment for years through a $459 million system expansion program designed to double electric load capacity and support long-term growth in the City of Santa Clara.

Nico also emphasized SVP’s responsibility to protect local ratepayers. He explained that SVP operates under a cost-of-service model, and data centers pay for infrastructure to directly connect them, as well as their share of the costs of system improvements that meet the dual purpose of increasing capacity and replacing aging infrastructure. This approach supports long-term rate stability while maintaining grid reliability.

Members of the Assembly committees thanked Nico for his clear, practical perspective and recognized Silicon Valley Power’s experience as a municipal utility actively managing large-load growth. Committee leaders noted the value of hearing directly from utilities doing the on-the-ground work of balancing innovation, affordability, and reliability as California’s energy needs evolve.

📺 Watch the testimony here.