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35 Benefit to the Subscriber. Based on the full 2 million kWh allocated under this agreement, the set 36 PPA rates per the agreement and with the locked Neel bill credit rate and escalator, if the City 37 subscribed to the full 2 million kWh, the City could expect to have a cumulative savings of over 38 $689,000 over the 25 year term. Attachment A shows the expected savings if we only subscribed 39 to 500,000 kWh. That would start with an annual savings of $5,350 in year 1 and an estimated 40 cumulative savings of $172,266 over the 25 year term. at This action only executes the overlaying Subscription Agreement between the City of Roseville 42 and New Energy Equity, LLC, which would be the operator of the Community Solar Garden(s) 43 ultimately identified in future amendments. As the City subscribers to actual identified Solar as Gardens, this agreement would be amended by filling in and executing Exhibit B (Agreement 45 between the Operator and Neel Energy added as reference), Exhibit D (Agreement between Neel 46 Energy and the City of Roseville as the subscriber), Exhibit H (name and locations for Solar 47 Gardens) and Exhibit I (monthly estimated power production for each CSG). This agreement as locks in the PPA rate (as detailed in Exhibit F) and specifies the general terms per the agreement. as As a final note and point of clarification, IPS Solar is acting as the developer of the Community 50 Solar Gardens. They help find sites, subscribers, etc. for the construction of the actual gardens. 51 New Energy Equity would operate the CSG's in question, and therefore the subscription 52 agreement is between the City and New Energy Equity, not IPS Solar. 53 POLICY OBJECTIVE 54 Policy 6.2 of the Roseville 2030 Comprehensive Plan indicates the City should reduce negative 55 human impacts on the environment through citywide energy conservation and reduction of 56 pollution and waste. 57 FINANCIAL IMPACTS 58 Per the agreement and using current Neel Bill Credit rates which would be locked in as each 59 individual Community Solar Garden is subscribed to and this agreement is amended, the City 60 can expect to save approximately $5,350 per 500,000 kWh of subscription in Year 1. Full 61 cumulative savings over the 25 year term of the CSG subscription is estimated at $172,266 per 62 500,000 kWh of subscription. 63 STAFF RECOMMENDATION 64 Approve the Community Solar Garden Subscription Agreement with New Energy Equity, LLC. 65 REQUESTED COUNCIL ACTION 66 Motion approving the Community Solar Garden Subscription Agreement with New Energy 67 Equity, LLC. M Prepared by: Marc Culver, P.E., Public Works Director Attachments: A: Community Solar Garden Cash Flow — 500,000 kWh System B: Community Solar Garden Subscription Agreement Page 2 of 2