REPORT TO COUNCIL
SUBJECT
Title
Action on a Substation Agreement with Intel Corporation for the Expansion of the Juliette Substation and an Increase to the Allocation of the Energy Capacity
Report
COUNCIL PILLAR
Deliver and Enhance High Quality Efficient Services and Infrastructure
BACKGROUND
In the mid-1990s, Intel Corporation (Intel) planned to significantly increase their electric load to serve their operations at 3750 Juliette Lane in the City of Santa Clara (Property). In 1995, Silicon Valley Power (SVP) built the first customer dedicated substation (Juliette Substation) at the Property to help serve this electric load. Intel paid all costs to build the initial substation which consisted of two transformers. Initially, SVP allocated 56 MVA of energy capacity for Intel's use on the Property. Thereafter, SVP recently allocated an additional 6 MVA after the refurbishment of the two original transformers and Intel's payment of the load development fees for the additional capacity.
Intel has seen a significant increase in their electrical demand due to the ongoing expansion of their data center operations at the Property. This is primarily due to the need for more computational power and data storage growth. To address this rising demand, Intel has requested an expansion to the Juliette Substation. Intel is seeking an agreement with SVP to expand the substation and increase their allocated energy capacity to 79 MVA.
DISCUSSION
According to Intel, this upgrade is critical for ensuring that its data centers can continue to operate efficiently and without disruption, and it will also support the company's expanding role in technology innovation and data services. The substation expansion and additional capacity allocation will require improvements and infrastructure enhancements. The proposed substation agreement (Substation Agreement) sets forth the terms necessary to facilitate this expansion and power allocation while also protecting SVP's interest...
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