Utilities Undergrounding

Utilities undergrounding involves relocating overhead electrical, telephone and cable TV wiring and equipment to below-ground vaults and/or above ground padmounts to house the equipment.

Since 1965, the City of Palo Alto Utilities (CPAU) has administered an ongoing program to convert overhead utility lines, including electric, telephone, and cable TV facilities, to underground. Read more: Rules and Regulations #17 - Conversion of Electric and Communication Facilities to Underground. 

City Council creates an underground district by passing an ordinance which amends the Underground District into Municipal Code. This occurs after a Public Hearing to take comments from the public.

Yes. There are 3 types of underground districts:

1) General Public Interest and Benefit district where CPAU pays for all construction in the Public Right-of-way;

2) Primarily for Local Public Benefit district where the construction costs in the Public Right-of-way are shared equally between the utility and the residents; and

3) Insufficient Public Benefit, where the requester pays at least 75% of the cost of the undergrounding in the Public Right-of-way.

Additional information regarding the types of underground districts can be found in: Rules and Regulations #17 - Conversion of Electric and Communication Facilities to Underground.

Over the years, each type of underground district has been formed and constructed. However, the overwhelming majority of the districts have been General Public Interest and Benefit districts.

For several reasons, priorities in City of Palo Alto have shifted from undergrounding, to upgrading and modernizing the existing electric system. In the past, about 1% -2% of electric revenues were spent on undergrounding each year, but since 2010 the program has slowed down due to the high cost of project, the lengthy project timeline, and other projects like Foothills Undergrounding and Grid Modernization that took priority among others. There are currently 8 proposed underground districts, (2) of which are budgeted for engineering design only. Staff will request funding for construction through the annual Capital Improvement Project budget process and City Council approval.

The rate at which undergrounding can be accomplished is dependent upon the financial participation of our joint partners (telephone and cable TV providers). The telephone company is regulated by the California Public Utilities Commission on how much it must spend on underground projects. Any acceleration of the program would have to be coordinated closely with telephone regulations. Proposed districts typically take 5-7 years to coordinate the design with joint partners, procure materials, and construct.

Currently, there are no plans to underground the entire City. As shown in the Underground District map below, there are (8) proposed districts, which AT&T has agreed to participate in with City of Palo Alto.

The City prepares a 5-year budget each year. This document shows the next several planned underground districts. Planning is not done beyond the 5-year planning horizon. This is because the decision to underground is based, in part, on the condition of the electric system which constantly changes due to renovations and new construction.

View the current map of undergrounded utilities(PDF, 788KB)

CPAU not only develops new underground districts but, because of the limited life expectancy of equipment, proactively rebuilds older districts to minimize the risk of unplanned outages. This work is necessary to help ensure electric service reliability, improve safety conditions surrounding the electrical equipment, and is for the benefit of all customers in the area.

City Council creates an underground district by passing an ordinance which amends the Underground District into Municipal Code. This occurs after a Public Hearing to take comments from the public. Every resident in a neighborhood must agree to participate in an underground district for it to be implemented.

During the formation of the underground district, a survey will be sent out to determine interest in the underground district. You should respond that you are not interested in forming a district and write to the City Council letting them know your concerns. You may also attend the Public Hearing for the underground district and speak directly to Council with your concerns.

The portion of the work performed by CPAU costs between $10,000 and $30,000 per parcel (as estimated in 2025). In addition to this cost, the property owner can spend from $8,000 to $15,000, or more in some cases, to make a parcel ready for underground service. The actual cost a property owner incurs is due to a variety of factors such as the distance from the City's electrical service box in the sidewalk or street to the property owner's meter panel, whether the trenching work is under a paved walkway or driveway versus in the lawn, the variations in price provided in written bids from licensed electricians or contractors, and which installer is selected by the property owner.

If it is a General Public Interest and Benefit district, the property owner pays $8,000 - $15,000 to make a parcel ready for underground service. In other types of districts where AT&T and Comcast do not participate, the property owners pay a greater share of the costs.

The City has a 10-year loan program where a lien is placed against the property for the amount of the loan and the loan payments are collected on the property tax bill.

To be certain that your money is well spent, we recommend spending some time before you start your project by asking friends for personal recommendations of contractors they have liked, getting written bids from contractors, checking their references, obtaining a written contract for the terms and work agreed to, and monitoring the project and contractor as the work progresses. A great source of thorough information and free publications about selecting a contractor in our area is the Contractors' State License Board, Northern Region. Visit their website at cslb.ca.gov or call their office at (916) 255-4027. Complaints can also be registered through this oversight board.