REPORT TO COUNCIL
SUBJECT
Title
Action to Authorize the City Manager to (1) Execute Amendment No. 1 to the Substation Agreement with 1220 Santa Clara Propco, LLC for the Memorex Junction Substation and (2) Negotiate and Execute Amendments to Other Existing Customer Substation Agreements to Allow for Load Ramp Acceleration and/or Additional Capacity, Subject to Power Availability and Incorporation of Standardized Terms for Curtailment and Other Conditions
Report
BACKGROUND
On May 5, 2022, the City and 1220 Santa Clara Propco, LLC (Customer) entered into a Substation Agreement (Substation Agreement), pursuant to City Council authorization under RTC 22-1704, for the (1) delivery of electrical power to Customer's data center located at 1200 Memorex Drive (Property) and the (2) development of infrastructure for the delivery of that power, including the construction of Memorex Junction Substation. Under the Substation Agreement, the City agreed to provide power to the Property pursuant to a load ramp schedule, with capacity increasing incrementally to a maximum of 31 MVA by 2027.
Customer desires additional electric capacity with an accelerated load ramp, and the City is willing to accommodate Customer, subject to terms of the proposed amendment.
DISCUSSION
Proposed Amendment No. 1 to 1220 Santa Clara Propco, LLC Substation Agreement
As previously communicated to the City Council, Silicon Valley Power (SVP) is experiencing significant load growth. To address this demand, SVP is upgrading its facilities and coordinating with the California Independent System Operator (CAISO) through the transmission planning process. In parallel, SVP has been developing innovative approaches to bring large-load customers online while continuing to protect residential and small commercial customers. The proposed amendment reflects one such approach.
The proposed amendment increases the available electric capacity to the Customer from 31 MVA to 77 MVA. SVP will provide new electr...
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