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Albany board weighs joining regional data‑center power subscription; asks staff for economic analysis
Summary
The Albany Utility Board heard a proposal to subscribe to part of a data‑center power bundle presented by MEAG; members asked staff for a detailed revenue and cost analysis and voted to continue negotiations for two weeks.
The Albany Utility Board on Aug. 14 discussed whether to subscribe to a proposed data‑center power package offered through MEAG. Mister Jacobs, who introduced the opportunity, said MEAG reported roughly 7,000 megawatts of potential data‑center demand in the state and that participating cities can share committed capacity and revenues.
Jacobs said the specific project under consideration (presented by a host municipality) plans a phase‑one demand of about 80 megawatts; the host city would retain 100% of the revenues tied to its 30‑megawatt commitment while other participating cities would split remaining revenues roughly 50/50. Jacobs told the board Albany currently shows about 18 megawatts of excess capacity but already has a separate five‑megawatt commitment for five years.
Board members questioned the term and risk of a long subscription. The chair and several members pushed back on a proposed 10‑year commitment, with one member saying, "I don't think we have enough information here to be making this decision today." Members raised market‑resale options for excess power, uncertainty over how other cities may later allocate capacity, and operational risk tied to whether the Shearer power plant remains a dispatchable resource. Jacobs acknowledged those concerns and recommended staff work with ECG (Electric Cities/ECG) and internal finance staff to model outcomes at different subscription levels.
The board voted to continue negotiations and requested staff return within two weeks with a detailed analysis of revenue sharing, projected payments under different megawatt subscription levels and the implications for Albany's utility fund and market sales. The motion to continue carried on recorded roll call.
Next steps: staff will ask ECG to produce a fiscal and operational analysis showing (a) revenue estimates under the 50/50 share scenario, (b) sensitivity to plant‑dispatch changes and litigation risks, and (c) shorter subscription alternatives. The board said it will revisit the matter at its next meeting prior to any formal contractual commitment.
