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2 subscription agreements with five solar garden developers, and a lottery was conducted to allocate subscription capacity to participating local governments. Additional information about the “Community Solar Subscriber Collaborative” is available in the fact sheet attached. Community Solar Gardens operate under Minnesota Statute 216B.1641 and regulatory oversight provided by the Minnesota Public Utilities Commission. Eligible gardens have no less than five subscribers, and no subscriber may account for more than 40% of the garden’s capacity. Eligible subscribers must be retail electric customers of the utility served by the garden, and located in the same or adjacent county as the garden. Additional information and requirements are described in the attached “Frequently Asked Questions” document provided by Xcel Energy. Round 1 lottery results were announced on January 28, 2016 and local governments were requested to signal their intent to consider subscription opportunities by February 29, 2016. Unclaimed lottery tickets were re-allocated in a second lottery, and results were announced on April 5, 2016. The city of St. Anthony participated in both rounds of the lottery and offered to consider subscription opportunities that do not exceed 1.5 million kilowatt-hours (“kWh”) of annual electricity production, equivalent to approximately 880 kilowatts (“kW”) of solar garden capacity. The city of St. Anthony was offered subscription agreements for a total of 920 kW of capacity distributed across the following three community solar gardens: • 120 kW in a community solar garden to be developed by SolarStone in Wright County • 200 kW in a community solar garden to be developed by USSolar in Carver County • 200 kW in a community solar garden to be developed by USSolar in Wright County • 400 kW in two community solar gardens to be developed by TruNorth Solar in Carver County Considerations: Community Solar Garden subscription agreements represent 25 year contracts. The city may subscribe up to 120% of the annual electricity consumption of one or more facilities. Once a community solar garden is operational, the city will make monthly payments to the garden operator for its portion of the energy produced. The city will also receive credits on its electricity bill from Xcel Energy for the city’s portion of the energy produced. The utility bill credit may also include a payment for the “renewable energy credits,” which would represent Xcel Energy’s acquisition of, and legal claim to, the solar energy attributes. Subscription rates and bill credits may vary depending on a number of factors. The developer determines the subscription rate. All developers offer a “pay-as-you-go” subscription with no upfront payments required from subscribers for the construction costs of the solar garden. Subscription rates may vary based on the Xcel Energy rate plan of the facility subscribed and may, or may not, include an annual escalation in the rate. Bill credit rates are determined by the Xcel Energy rate plan that applies to each facility and may change annually following review by the Minnesota Public Utilities Commission. Bill credit rates for 2015 varied by customer type as follows: • Residential: $0.12743 per kWh • Small General Service: $0.12431 per kWh • General Service: $0.09914 per kWh