> ## Content Index > Fetch the complete content index at: https://www.sotkn.com/llms.txt > Use this file to discover other available public pages before exploring further. # Oracle proposes $10M a year to El Paso Electric for Jupiter. Bloom stays primary - URL: https://www.sotkn.com/wire/oracle-jupiter-epe-esa-10m-bloom-primary-wire/ - Published: 2026-10-13T23:45:09.000Z - Updated: 2026-10-13T23:45:09.000Z - Description: Oracle proposed a $10 million-a-year El Paso Electric agreement for Project Jupiter — construction, commissioning and backup — while Bloom Energy remains the primary 2.45 GW microgrid. Credits of up to $55 million a year are a separate offer, from 2027. - Author: Sean - Tags: #desk-wire `WIRE` · `HYPERSCALERS` · `US` · Data as at 13 Oct 2026 Oracle today published a **proposed Energy Service Agreement** with **El Paso Electric** for **Project Jupiter**, the AI campus in Doña Ana County, New Mexico. The utility print is **$10 million a year for 10 years**, paid **even if usage sits below the contracted level**. A **separate** proposal would put **as much as $55 million a year** of bill credits onto EPE’s New Mexico residential and small-business accounts for **up to three years**, from **2027**. The headline on the release is **“at least $155 million”** of customer-offset. **Bloom Energy’s fuel-cell microgrid remains the primary power source.** “There is no change to our plan,” Oracle said. On the [hyperscalers layer](https://www.sotkn.com/stack/hyperscalers/), that is the grid getting paid for the edge of a campus still meant to run off-grid. ## What happened | Print | Figure | Source, dated | | ------------------------------------ | --------------------------------------------------------------------------------------- | --------------------------- | | Energy Service Agreement (proposed) | **$10 million a year for 10 years**, even if usage is below contracted levels | Oracle release, 13 Oct 2026 | | What the ESA is for | Late-stage construction, initial commissioning, **emergency backup**, life-safety power | Same release | | Customer credits (separate proposal) | **As much as $55 million a year**, up to **three years**, from **2027** | Same release | | Headline offset | **At least $155 million** to offset New Mexico customer utility costs | Same release | | Primary power | Bloom Energy fuel-cell microgrid. **“There is no change to our plan.”** | Same release | | Bloom capacity (April company print) | **Up to 2.45 GW** of installed fuel-cell capacity | Oracle / Bloom, 27 Apr 2026 | | Status | **Proposed.** More detail **after the filing** | Oracle, 13 Oct 2026 | Kelly Tomblin, El Paso Electric’s president and CEO, said EPE welcomes the chance to “facilitate Oracle’s credit.” Mahesh Thiagarajan, executive vice president of Oracle Cloud Infrastructure, said Oracle is acting **“well before our data center comes online.”** Our arithmetic, not a company total. Ten years at $10 million is a **$100 million** floor on the ESA. Three years at the $55 million cap is a **$165 million** ceiling on the credits. Add the ESA floor to **one** year of the credit cap and you get **$155 million** — Oracle’s own headline. If both proposals clear at those caps, the envelope is **$265 million**. Treat $155 million as Oracle’s “at least”; treat $100 million and $165 million as our split of the two lines it printed. ## Why cash cares Jupiter does not invoice Oracle’s AI-cloud backlog until a hall has power a customer will accept. In the quarter to 31 August 2026 Oracle spent **$28.5 billion** on capital projects against **minus $5.4 billion** of free cash flow, with remaining performance obligations at **$664 billion**. New Mexico was **not** in the 850 MW it delivered that quarter. Clay Magouyrk told the Q1 call the New Mexico campus is about a **gigawatt** and is **not** in the previously stated FY27 revenue guide. The 13 October ESA is cash that would leave **before** that campus bills. The $10 million a year cannot be read as the power bill for 2.45 GW of campus load. Oracle’s own words put the ESA on the **edge** of the site: construction, commissioning, backup and life safety, not the fuel-cell microgrid that is supposed to carry the racks. The utility still gets a take-or-pay cheque. Bloom still gets the campus. That split matters because New Mexico already has a rate case on the table. El Paso Electric’s amended filing in **Case 25-00082-UT** asks for about **$70.5 million** of extra New Mexico base-rate revenue, with a proposed **26.8%** average first-step increase for listed classes and a further **18.7%** relative to that first step. Our arithmetic: a $55 million annual credit at the cap is about **78%** of that $70.5 million ask in a single year ($55m ÷ $70.5m). It does not settle the rate case. ## What a take-or-pay grid bill is A utility builds, or keeps, kit to serve a large load. If the load never shows, or shows late, the cost of that kit can leak onto every other bill. A take-or-pay clause — pay the contracted amount **whether you draw the power or not** — is how the buyer keeps that leak off the residential class. Oracle’s 13 October ESA is that clause in cash: **$10 million a year for 10 years**, even if usage is below contracted levels. The White House Ratepayer Protection Pledge, which Amazon, Google, Meta, Microsoft, OpenAI, Oracle and xAI signed on **4 March 2026**, asked the same thing: negotiate separate rate structures, and **pay those rates whether they use the electricity or not**. Duke Energy’s North Carolina large-load settlement bills **75%** of contracted demand, used or not. Indiana’s AES/Google Monrovia order put **$32.3 million** of direct connection on Google and **$73.8 million** of network upgrades into AES’s rate base. Jupiter is the odd one in that set. Duke and AES are pricing the **campus load**. Oracle is pricing a **backup and construction** service while Bloom is still named as primary. The 2.45 GW still sits on fuel cells, and those cells still need **gas** and an **air permit**. We already covered the trucked-gas bridge; this note is the utility bill, not that story again. ## The second-order read **Who gets paid.** El Paso Electric, on a $100 million-floor ESA if the filing is approved as printed. New Mexico residential and small-business customers, if the credit lands, from 2027\. Bloom Energy, still, on the campus microgrid — up to 2.45 GW — because Oracle used the ESA day to say the plan has not changed. **Who pays.** Oracle, in cash, **before** Jupiter is online. That cash sits on top of Q1’s $28.5 billion of capex and negative free cash flow. **Upstream.** The Bloom cells still need a New Mexico air-quality permit and a gas supply. Energy Transfer’s rerouted pipeline is the dated fuel clock; a September report put service in **February 2027**, and an air-permit decision has been reported as due by **23 November 2026**. A signed ESA with EPE does not move either date. **Downstream.** OpenAI is the named AI customer for the campus in Oracle’s earlier Jupiter notes. A backup utility contract does not convert the $664 billion remaining-performance-obligations print. **Stuck step.** Filing and approval, then gas and air. The 13 October print is a **proposal**. No docket number, no megawatt figure on the ESA, no tariff page. Until EPE files, the $10 million and the $55 million are offers, not rates. ## Two cautions This is **not a signed, approved tariff**. Oracle said more detail comes **after the filing**. Do not treat $10 million a year as Jupiter’s running power cost, and do not treat “at least $155 million” as cash already owed. The $100 million, $165 million, $265 million and 78% figures are **our arithmetic** from Oracle’s and EPE’s stated lines. The 2.45 GW figure is the April company print, restated by today’s “no change” line — not a new capacity add. ## What would change the view - The ESA filing showing a **megawatt**, a **tariff schedule**, and a **docket**, or a filing that is much smaller than $10 million a year. - The New Mexico PRC rejecting or rewriting the ESA or the credits. - Oracle walking back Bloom as primary, or a permit denial that forces the campus onto the grid after all. - The air permit or the Energy Transfer in-service date slipping in a way that hits Magouyrk’s “not in FY27 guidance” claim. ## What to watch - **The ESA filing** — date, MW, and whether the $10 million is take-or-pay as printed. - **Credit start in 2027** — tariff or rider, and for how many of the three years. - **NMED air permit** — reported decision window **23 November 2026**. - **Energy Transfer pipeline** — reported in-service **February 2027**. - **Oracle Q2 FY27 results, 14 December 2026** — capex, free cash flow, New Mexico colour. *Read: [Hyperscalers](https://www.sotkn.com/stack/hyperscalers/), [What Is Cash Capex? The Cash That Leaves Before AI Hours](https://www.sotkn.com/explained/cash-capex-explained/).* --- **Get the Wire.** A free brief every day. **[Subscribe free →](https://www.sotkn.com/#/portal/signup)** Sources: [Oracle, 13 Oct 2026 ESA proposal](https://www.publicnow.com/view/1CED54EA432BF34F7F5149ADF29E06A5BC508983?ref=sotkn.com); [Oracle / Bloom, 2.45 GW microgrid, 27 Apr 2026](https://www.oracle.com/news/announcement/oracle-borderplex-and-bloom-energy-to-power-project-jupiter-with-fuel-cell-technology-2026-04-27/?ref=sotkn.com); [White House Ratepayer Protection Pledge, 4 Mar 2026](https://www.whitehouse.gov/releases/2026/03/ratepayer-protection-pledge/?ref=sotkn.com); [White House fact sheet, same day](https://www.whitehouse.gov/fact-sheets/2026/03/fact-sheet-president-donald-j-trump-advances-energy-affordability-with-the-ratepayer-protection-pledge/?ref=sotkn.com); [NMPRC Case 25-00082-UT](https://www.prc.nm.gov/epe-rate-proposal-case/?ref=sotkn.com); [What Does Oracle Do?](https://www.sotkn.com/explained/what-does-oracle-do/); [Oracle trucked-gas Wire](https://www.sotkn.com/wire/oracle-trucked-gas-data-center-power-4x-cost-wire/); [Duke 75% Wire](https://www.sotkn.com/wire/duke-data-center-power-tariff-75-percent-minimum-bill-wire/); [Indiana AES / Google Wire](https://www.sotkn.com/wire/indiana-aes-google-monrovia-390-mw-data-center-power-wire/). Not investment advice.