WALLINGFORD — The Public Utilities Commission began talks this week on a market-price power supply agreement that describes how the town Electric Division would supply power to proposed data centers.
The agreement, which must be adopted by the PUC and then approved by the Town Council, is between the Electric Division and GotSpace Data Partners LLC.
GotSpace, a Groton-based company with its business registration in Boston, has signed a municipal host fee agreement with the town to bring data centers to Wallingford.
Under the agreement, GotSpace would pay Wallingford an annual host fee for each building that contains computer servers. The host fees, or payment-in-lieu-of-taxes, for each building with a capacity of 32 megawatts (MW) or higher would be $1.5 million annually.
Wallingford's current zoning regulations don't mention data centers, so language must been added to define a data center and allow them as a use. Although the proposed new regulations cover data center developments, GotSpace must comply with the stricter rules set forth in the host fee agreement.
The power supply agreement is the third piece that GotSpace needs to build data centers in town.
The Electric Division has similar agreements with other heavy power users, including Nucor, the steel production company on Toelles Road.
The power supply agreement for GotSpace is modeled after the Nucor deal — some language is lifted directly.
GotSpace would purchase electricity and capacity requirements from the Electric Division to supply the data center facilities in town.
GotSpace would have a meter under the Electric Division and would be responsible for the cost of all new construction necessary to receive power from the town.
The Electric Division would provide services in connection with supplying power, including maintenance of delivery infrastructure, transformation, administration and billing. GotSpace would compensate the Electric Division for these services.
GotSpace would cover capacity and transmission payments attributable to their power load for as long as the capacity payment obligation exists.
GotSpace would pay the Electric Division under current ISO New England — the regional grid operator — market rules and practices.
The Electric Division costs directly associated with services provided to GotSpace, such as maintenance, repairs or replacement of a substation, would be chargeable to GotSpace. Administrative costs, such as preparation of bills, would be recovered through a charge of $5 per megawatt hour, adjusted annually.
GotSpace would be required to make a security deposit, in cash or a letter of credit, in an amount to be determined by the Electric Division to cover three months of service, and may required an additional deposit if the estimate is not sufficient under its obligations to ISO New England.
The terms of the agreement are not deemed confidential. Pursuant to the Freedom of Information Act, the Electric Division's ability to restrict information disclosure is limited, but the the Electric Division would make a good faith effort to provide GotSpace of any disclosure requests under FOIA.
The Public Utilities Commission is scheduled to further discuss and possibly vote on the power supply agreement at its next meeting, scheduled for 6:30 p.m. Tuesday at the Electric Division offices, 100 John St.