REPORT TO COUNCIL
SUBJECT
Title
Action on Authorizing the City Manager to Negotiate and Execute Amendment No. 1 to the Substation Agreement with Vantage Data Centers CA31, LLC for the Bowers Avenue Junction Substation
Report
COUNCIL PILLAR
Deliver and Enhance High Quality Efficient Services and Infrastructure
BACKGROUND
On September 27, 2022, City Council approved a Substation Agreement with Vantage Data Centers CA31, LLC (Vantage) for the Bowers Avenue Junction (BAJ) Substation (RTC 22-1061). Under the BAJ Substation Agreement ("Agreement" - Attachment 1) executed on October 12, 2022, Vantage constructed, at its own expense, BAJ Substation with a capacity of 99 megavolt-amps (MVA) to serve its data center. Costs incurred by SVP related to the design, procurement, construction, inspection, and testing associated with BAJ were paid in full by Vantage as required by the Agreement. The construction of BAJ is complete and Vantage is working on commissioning their facility.
DISCUSSION
The Agreement included Exhibit E (Available Capacity Schedule) and Exhibit G (Vantage Portfolio Operating Limit). Exhibit E details the load ramp and required payments for activities associated with the BAJ Substation. Exhibit G contains the load ramp at four Vantage Data Center locations. Vantage has requested a modification to Exhibit G to modify the load ramp by location without changing the total load of 192.5 MW for the four sites. Staff reviewed the proposal and is supportive of it as it maintains the total load and does not affect any of the California Independent System Operator (CAISO) transmission modeling and commitments. It also better utilizes SVP's 60kV transmission loop system.
ENVIRONMENTAL REVIEW
The California Energy Commission (CEC) prepared and adopted an Environmental Impact Report (EIR) for the Vantage Data Centers CA31, LLC (Bowers Avenue Junction Substation) data center project in accordance with the California Environmental Quality Act (CEQA). On A...
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