Part 3 of 9

Power Infrastructure

MW available, substation capacity, grid reliability, and redundancy.

Power Cost

$0.06/kWh

Grid CapEx

$30MM

Power Availability by City

Current Usage vs Available Capacity (MW)

Currently Used
Available

Power Cost Comparison

Blended Rate ($/kWh)

15-40% cheaper than N. Virginia or California

Backup Power Economics (60 MW)

Tier 4 Diesel vs Natural Gas + BESS

Utility Structure

CPS Energy is vertically integrated (owns generation and wires), which simplifies the Power Purchase Agreement (PPA) process compared to the broader deregulated ERCOT market.

Capacity Requirement

A 100 MW project requires a dedicated, on-site substation tapping 138kV or 345kV transmission lines.

Grid Connection CapEx

Total Grid CapEx for the 138kV substation: $30MM (front-loaded into Phase 1 for full 100 MVA capacity). This includes the private substation ($22MM) and expansion infrastructure ($8MM). Front-loading enables economies of scale for Phase 2 and Phase 3.

Power Costs

Estimated all-in rate for Large Industrial Primary Service is approximately $0.055–$0.075/kWh (blended), or modeled at $0.055-$0.065/kWh. This is 15–40% cheaper than Northern Virginia or California. High load factor AI workloads (>90%) drive the effective rate down.

Redundancy Mandate & Senate Bill 6

New regulatory frameworks (Senate Bill 6) allow ERCOT/Utilities to interrupt power to large loads during grid emergencies, creating a backup power mandate.

Backup Solution (Regulatory Compliance)

The recommended strategy is a Natural Gas Generator + Battery Energy Storage System (BESS) hybrid architecture. We plan to use Natural Gas due to the unlikelihood of getting Tier 4 Diesel approved under Bexar County's "Serious" Ozone Non-Attainment status. The Major Source threshold for NOx emissions drops to 50 tons per year (tpy).

Backup Power Economics

Total CapEx for 100 MW Backup Power is near parity: $157.5MM for Tier 4 Diesel vs. $159.2MM for Natural Gas + BESS. The 10-year Total Cost of Ownership (TCO) is slightly lower for the Natural Gas + BESS hybrid: $171.0MM compared to $173.1MM for Tier 4 Diesel, while offering low permitting risk.