The ceiling of difficulty with 28nm technology

[Dalkore]

Yep, there is an aluminum smelter in the area.   Thanks for the info, I did read through some of the power contract information and some of the items you mention are listed.  

Now imagine you were building a massive hashing farm.  Would you be willing to trade (hypothetically) up to 1% annual outage for 30% lower power rate?  Like the aluminum smelter it doesn't matter if you are producing Bitcoins in any given second just how much you can produce in a year and at what cost.

I would love a contract like that on a smaller scale but power companies generally only make contracts like that with the largest of users because if they need to cut 1% of demand it is 1% of demand not necessarily 1% of customers.  If they need to shed 1MW of demand it is easier to disconnect (under contract) one 1 MW customer then it is to disconnect one hundred 10KW customers.

My strategy is to build a few separate locations to keep under the cap.  

I think you are still misunderstanding. You wouldn't want to be under the cap.  Would you be upset to have cheaper power?  
This is something companies contact for BECAUSE they want very cheap power rates.  Cheaper than the rates offered to customers under non-interruptable contracts.

In this system you want to be under the cap because you are not forced to buy a contract.  I understand just it doesn't apply to hosting.  I wouldn't have interpretable power contracts for a data-center.  The power rate does go down even more if your under the power contract but the discount is not attractive enough to compel me to operate under those terms.  If you're are running a super heavy power load business that can handle small cut-backs, I can see that being a good thing.  

[DeathAndTaxes]

In this system you want to be under the cap because you are not forced to buy a contract.  I understand just it doesn't apply to hosting.  I wouldn't have interpretable power contracts for a data-center.  The power rate does go down even more if your under the power contract but the discount is not attractive enough to compel me to operate under those terms.  If you're are running a super heavy power load business that can handle small cut-backs, I can see that being a good thing. 

Companies choose to operate on the interruptable schedule in exchange for lower rates. 

There is always a contract involved.  Your choice is interruptable schedule for a lower rate OR non-interruptable schedule for a higher rate.
Why would you pay more for power on Bitcoin mining then you have to?

Of course this is mostly academic it would take a very long Bitcoin operation to even be given the choice.

I understand just it doesn't apply to hosting.

A datacenters will CHOOSE to pay MORE for power in return not having an interrupt provision.
A aluminum smelter (or Bitcoin farm) will CHOOSE to pay LESS for power in return for having an interrupt provision.

[Dalkore]

In this system you want to be under the cap because you are not forced to buy a contract.  I understand just it doesn't apply to hosting.  I wouldn't have interpretable power contracts for a data-center.  The power rate does go down even more if your under the power contract but the discount is not attractive enough to compel me to operate under those terms.  If you're are running a super heavy power load business that can handle small cut-backs, I can see that being a good thing. 

Companies choose to operate on the interruptable schedule in exchange for lower rates. 

There is always a contract involved.  Your choice is interruptable schedule for a lower rate OR non-interruptable schedule for a higher rate.
Why would you pay more for power on Bitcoin mining then you have to?

Of course this is mostly academic it would take a very long Bitcoin operation to even be given the choice.

I understand just it doesn't apply to hosting.

A datacenters will CHOOSE to pay MORE for power in return not having an interrupt provision.
A aluminum smelter (or Bitcoin farm) will CHOOSE to pay LESS for power in return for having an interrupt provision.

Interesting.  I know three operations in my area and they are all in the "pay the standard rate under the cap and not have interruptions" camp. 

[cryptx]

Thx for all the info

I edited the original post

[topminingcontracts]

I like the approach of Takeshi_Kovacs but I think the variable price can be 100, or 1 or 10000 and may be I am wrong but it changes.

All the best

J