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Member Misra asked where the panels were manufactured. Mr. Chris Psihos stated the ones iDeal Energies is using are made in Toronto Canada and are one of the three manufacturers of solar panels in Canada Member Misra asked what the life expectancy is of the solar panels. She understood the panels were warrantied for 25 years. Assuming these are state of the art panels, how much transition does iDeal Energies expect to see going forward. Mr. Chris Psihos stated solar panels today are basically all the same thing. He explained how current solar panels create energy using sunlight. He stated this is the same technology that has been around for forty years. He stated the warranty is two tiered. Member Freihammer asked if the main risk about not being able to predict the electricity market. Mr. Culver stated the two major risks, particularly owning the panels from day one is if there was some catastrophic weather event, the panels could get damaged where insurance would have to come into play versus and O and M situation. The City is insured through the League of Minnesota Cities but if they get a weather event that is significant that would damage the panels then there is other damage and the deductible would get eaten up quickly. The second risk is there is no set clause stating the City's PPA will always be lower than Xcel's energy rate. There is a possibility that there is a marginal higher rate than what the City would be paying Xcel for that same energy in a given year. Given reasonable trends and there is a set escalator on the PPA, that should be a limited concern. After the 13"' year the City would not be paying the PPA anymore. Member Kruse asked if Xcel Energy could penalize people for not using the electric grid. Mr. Culver indicated they could not. It would be unlikely that the City would not be purchasing electricity from Xcel Energy. Mr. Rich Ragatz stated with the solar rewards program, it is set up where the value of the energy the City is keeping 20% of that as a savings each year. This would be a buffer in case rates do not increase as much as was projected or the output of the system did not produce as much energy as was indicated. The City would still be saving money. Mr. Chris Psihos stated the program was set up so the City would be saving money whether there was a large increase in rates or less of an increase. He noted iDeal Energies program is set up differently than most other solar companies. Mr. Culver agreed with Mr. Chris Psihos and Mr. Rich Ragatz that their goals should be to own the system and to realize the maximum benefit of the solar power production on that because then the City is not paying for the power at all with the exception of operating and maintenance costs. He noted the panels could be left on the City roofs for 40 plus years and still produce energy off of the panels.