The California Public Utilities Commission (PUC; San Francisco, California) approved the construction of San Diego Gas & Electric Co.'s (SDG&E; San Diego, California) Otay Mesa Transmission Project and certified the project's final environmental impact report.

The project consists of the construction of two 230-kV electric transmission circuits to connect SDG&E's Miguel Substation with both the Sycamore Canyon Substation and the Old Town Substation in San Diego County. The combined route length for both circuits is approximately 52 miles (84 km).

“With the approval of this project, we are taking another step to ensure reliable transmission of electricity in Southern California,” said PUC President Michael R. Peevey. “This project will reduce transmission congestion in the area and provide for expansion capability for electricity load growth.”

PUC approved a cost cap of US$209 million for the project, with a contingency amount of 5%. The project includes an agreement between the city of Chula Vista and SDG&E to underground a portion of the facilities to help with development efforts there. PUC expects that the time frame for construction and completion of the project will be closely coordinated with the construction of the Otay Mesa Power Plant, which is being constructed by Calpine Corp. under contract with SDG&E.