Electric Service Agreements (ESAs)

How the rules get applied

Each new large data center that seeks to join a utility system will sign a contract with the utility that sets out the terms of its service, called an electric service agreement (ESA). For data centers, the agreements will likely detail the costs the data center will be charged for electricity service, the resources that will be built to provide electricity, and various other provisions that are unique to the specific facility. 

In some instances, additional protections beyond those included in the tariff will be developed as part of the agreement, or a data center may commit to provide extra benefits, like more funding for home energy conservation programs. Like the tariffs, state-regulated utilities need PUC approval for each electric service agreement they enter into.  

Unfortunately, and controversially, utilities often designate portions of electric service agreements as trade secret, and these details are not disclosed to the public.