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GARLAND
POLICY REPORT
Work Session Item 3.e.
City Council Work Session Agenda
Meeting Date:
10/17/2022
Item Title:
Agreement for the Provision of Temporary Electric Distribution Service
Submitted By:
Darrell Cline
Strategic Focus Areas
:
ISSUE
Digital Garland Ferris, L.P. (“Digital”) is requesting Garland Power and Light (“GP&L”) construct facilities for the provision of temporary electric distribution service for construction and pre-occupancy testing of Digital’s planned data center facilities. Digital will pay for the construction of the electric distribution facilities and temporary electric distribution service. In addition to the initial payment of $410,000 for the installation of the distribution equipment and facilities, Digital will provide a parental guaranty as security for the provision of these services.
OPTIONS
Approve the agreement for the provision of temporary electric distribution service with Digital.
Do not approve the agreement for the provision of temporary electric distribution service with Digital.
RECOMMENDATION
Staff recommends Option 1 – Approve the agreement for the provision of temporary electric distribution service with Digital. This item will be scheduled for formal consideration at the October 18, 2022 Regular Meeting.
BACKGROUND
GP&L has been requested to provide temporary electric distribution power to Digital’s 14.955-acre tract of land located at 1505 Ferris Road, Garland, Texas until the earlier of December 31, 2024, or the in-service date of Digital’s electric substation providing permanent service to their property. The temporary electric distribution service will be for construction and pre-occupancy testing of Digital’s planned data center facilities. Within fifteen (15) days of the effective date of the agreement for temporary distribution service, Digital will make an initial payment of $410,000 for the construction of the electric distribution facilities. In addition to the initial payment, Digital will be responsible for any additional costs associated with the construction of the electric distribution facilities and for the cost of power consumed. Digital will also provide a parental guaranty as security for the provision of these services.
CONSIDERATION
Staff seeks the Council’s concurrence for authorizing the agreement for the provision of temporary electric distribution service with Digital.
Attachments
Agreement for Temporary Electric Service
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