2016-01-26_PWETC_AgendaPacket - Laserfiche WebLink

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216 Further discussion included the reality of the Minnesota latitude for a 10 KW 217 system and degree of slope to address sun angels, shorter winter days, and degree 218 of slope for the panels and even without snow, wintertime production averages only 219 10% of the annual production, with most production and annual power during the 220 summer months. 221 222 Mr. Kroll reviewed the latest iteration of the Power Purchase Agreement (PPA) and 223 highlighted the changes made since their firm's last presentation to the PWETC, 224 including PV production based on current Xcel Energy rates the city was receiving 225 for the skating center; the PPA rate and cash flow; different investor proposal 226 than originally presented and rationale in recommdg this investor. 227 228 Mr. Kroll noted that the original intent was to inst 1 an east/west array based on 229 size versus production available on the skating center roof until further research 230 was done on the complex rate structure with Xcel Energy for the OVAL and skating 231 center. Mr. Kroll anticipated this PPA would benefit, onomics for more 232 production and face completely sough and maximize KW us pursuing the 233 solar credit benefits, and would be a 300 KWh array v the original 234 specifications planned for a 375 KWh system, even though h dicted the 235 economics realized will be equal to or greater than those original projections by 236 going to standby service recognizing solar credits and their value in this model, 237 especially with the OVAL and its interesting usage curve. 238 239 Mr. Kroll advised that he still needed to further vet out the OVAL and capacity 240 schedule with Xcel Energy and reconciliation of those credits by blending rates. 241 Mr. Kroll reviewed anticipated annual generated revenue and cash flow, still 242 pending finalization. 243 244 Cand uest of Mr. Culver, Mr. %Kroviewed the PPA and how the money 245 ands, what the city could anticipate and the amount paid to the developer 246 om. 247 248 Mr. Kroll advised that the city would be charged for usage to -date, then receive 249 production credits against those KWh for the production portion of the system not 250 being charged for, as a separate line item showing the credit attained from the KWh 251 level, and another line item showing the capacity credit received from the 252 percentage of solar capacity credits, or what the city was paying for the solar PPA 253 and extra monies as their reconciliation. 254 255 At the request of Mr. Culver, Mr. Kroll reviewed how the city would get invoiced, 256 pending the negotiated PPA, from Xcel invoices based on monitoring and 257 production and supplemental invoice from the investor and differentials between 258 the two. 259 260 Additional discussion included some months with no credit and others with a huge 261 credit, with annual reconciliation based on that monthly ebb and flow, some of Page 6 of 18