Palo Alto’s Grid Upgrade: What Homeowners Should Expect

Are you hearing about smart meters, new transformers, or undergrounding coming to your Palo Alto street? If you own, plan to buy, or are thinking about selling, you want to know what this means for your home, your timeline, and your budget. In this guide, you’ll learn what’s changing, when work may reach your block, potential costs, and the steps to stay ahead. Let’s dive in.

Why Palo Alto is upgrading

Palo Alto’s municipal utility, City of Palo Alto Utilities (CPAU), is modernizing the grid to improve reliability and prepare for widespread electrification, including EVs and heat pumps. The city delivers electricity from a 100% carbon-neutral portfolio and is aligning infrastructure with clean-energy goals. Projects include advanced metering, transformer and conductor upgrades, selective undergrounding, and targeted wildfire risk reduction. You can review CPAU’s service overview on the city’s Utilities at a Glance page and the Grid Modernization program details on the city’s project page.

• Learn more about CPAU’s services: Utilities at a Glance
• See the distribution upgrade program: Grid Modernization for Electrification

Smart meters: what and when

What to expect at your home

CPAU is deploying Advanced Metering Infrastructure (AMI), often called smart meters, for electric, gas, and water. Meters collect interval data that support improved billing accuracy, faster outage detection, and customer portals such as MyCPAU and WaterSmart. CPAU notes data privacy and cybersecurity safeguards and provides materials on radio frequency exposure.

Installation timeline

CPAU expects about 95% of gas and water meters upgraded by the end of December 2025. Due to inventory constraints, about 95% of electric meters are expected by the end of April 2026, with remaining installations across all utilities by the end of 2026. Check the city’s AMI page for current schedule updates.

• AMI schedule, privacy, and FAQs: Advanced Metering Infrastructure

Costs and opt-outs

CPAU states there is no direct charge to customers for the AMI meters. Eligible residential customers can opt out of electric and gas AMI for published fees, such as a one-time setup and a monthly manual-read fee. For example, CPAU has listed a one-time $100 plus $25 per month option and a one-time $50 plus $10 per month option, depending on rate class. Water meters do not have an opt-out. Confirm current fees on the AMI page.

Street work: what to expect

What crews will do

Distribution upgrades include replacing many pole-top transformers with higher-capacity units, upgrading aerial conductors, replacing select poles and cabinets, installing new underground substructure in public utility easements, and adding pad-mounted equipment where feasible. Work can involve trenching in streets or sidewalks, short planned outages for cutovers, and temporary staging at the curb.

Pilot area and next phases

A pilot covering roughly 1,000 homes in northeast Palo Alto ran on a Feb 2024 to July 2025 schedule to inform the broader rollout. Design for additional regions is in progress, with further construction expected to start later in 2025. Check the Grid Modernization page for maps, notices, and the latest timing.

• Project scope and pilot timing: Grid Modernization for Electrification

Notices and outages

CPAU typically provides advance notices for construction and any short planned outages needed for meter swaps or cutovers. AMI also enables faster outage detection and restoration. Sign up for city utility notifications and read mailed project notices so you can plan around work windows.

Undergrounding and wildfire work

Where undergrounding stands today

Palo Alto has undergrounded utilities for decades, but city policy now prioritizes selective, benefit-driven projects rather than a citywide conversion. Funding is limited, and recent reporting notes the city has curtailed earlier ambitions for full-city undergrounding and no longer has an annual target.

• Undergrounding program details and funding: Utilities Undergrounding
• Local reporting on program changes: Palo Alto Online coverage

Homeowner costs and financing

For utility-led undergrounding districts, CPAU estimates the utility portion at about 10,000 to 15,000 dollars per home. Homeowners typically budget another 3,000 to 8,000 dollars or more for on-site prep such as panel moves or trenching. CPAU offers a 10-year lien loan program in some districts, repaid on the property tax bill. Terms vary by project, so review the city’s undergrounding page for your district.

Foothills fire mitigation

In designated foothill areas west of Highway 280, CPAU is undergrounding about 49,200 feet of overhead distribution lines and fiber to reduce wildfire risk. Expect more extensive, phased construction and decommissioning of poles as the project progresses.

• Project maps and phasing: Foothills Fire Mitigation Project

Easements and access

Many upgrades occur in Public Utility Easements that run behind sidewalks or along lot lines. PUEs may affect where you can build or landscape, and crews may need access behind the sidewalk or along easement strips. Review your title report and recorded maps to understand PUE locations before planning outdoor projects.

• Understanding easements and property requests: PUE guidance

Plan for EVs and electrification

CPAU’s grid upgrades aim to support EV adoption and whole-home electrification. Depending on your panel and local transformer capacity, you may need an electrical upgrade to install a Level 2 charger or convert major appliances. CPAU offers a Utility Service Capacity Fee Rebate that can credit up to 10,000 dollars per service address for some utility-side upgrade costs, and the city provides EV charger guidance and assistance for homeowners and multifamily properties.

• EV charger permits, rebates, and support: EV Charging at Home

Buying or selling in Palo Alto

Buyers: due diligence

Confirm whether a property sits inside a current pilot, undergrounding district, or planned Grid Modernization area. Ask your title and escrow team to identify any recorded PUEs and whether an undergrounding loan lien affects the tax bill. City project pages and maps provide timing and scope that can help you plan for construction.

• Project maps and program info: Grid Modernization for Electrification

Sellers: disclosures and positioning

Modern meters and upgraded transformers are positives for reliability and future-readiness. If construction is active near your block or a special assessment is pending, be prepared to disclose known projects and recent utility work such as meter swaps or underground conversions. Reliable documentation can help you set expectations and support a smooth sale.

• AMI benefits and notices: Advanced Metering Infrastructure

Your action checklist

• Confirm whether your property lies inside a CPAU project area and sign up for city project or outage notices. Start with the city’s Grid Modernization page.
• Review your title for Public Utility Easements and ask title or the county recorder to identify any liens, including possible 10-year undergrounding loans. See general PUE guidance.
• Prepare for AMI meter swaps by checking MyCPAU and WaterSmart for new interval data and deciding whether to opt out. Details are on the city’s AMI page.
• Planning EV charging or a remodel that adds electric load. Get a licensed electrician to assess panel capacity, apply for permits early, and review the city’s EV Charging at Home resources.
• Before any digging or landscaping near meters or easements, call 811 at least 48 hours before you dig and coordinate with CPAU. Find contacts on the city’s Utilities page.

Whether you are timing a sale around construction or planning upgrades that boost buyer appeal, you deserve a clear plan tailored to your block and your goals. If you want help aligning your real estate timeline with Palo Alto’s utility work, connect with Caitlin Beanan for local guidance and a strategy that puts you in control.

FAQs

What is Palo Alto’s grid upgrade and why is it happening?

• CPAU is modernizing meters and distribution equipment to improve reliability, support electrification like EVs and heat pumps, and align with the city’s carbon-neutral power portfolio.

When will smart meters be installed at my Palo Alto home?

• CPAU targets about 95% of gas and water meters by December 2025 and about 95% of electric meters by April 2026, with remaining installs across all utilities by the end of 2026.

Will I have to pay for a smart meter or can I opt out?

• CPAU states there is no direct charge for AMI meters; eligible electric and gas customers can opt out for fees that include a setup charge and monthly manual-read charge.

How much could undergrounding cost a Palo Alto homeowner?

• CPAU estimates utility-side work at about 10,000 to 15,000 dollars per home, plus typical homeowner site prep of about 3,000 to 8,000 dollars or more, with a 10-year lien loan option in some districts.

Will grid construction require outages or access to my property?

• Expect short planned outages during cutovers and potential access in public utility easement areas near sidewalks, with advance notices from CPAU.

How will upgrades support EV charging at home in Palo Alto?

• The program expands capacity with larger transformers and new conductors, and CPAU offers a Utility Service Capacity Fee Rebate that can credit up to 10,000 dollars for some upgrade-related utility costs.