2016.05.16 CC Packet - Laserfiche WebLink

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]::/I Rachel Leitz From: Doug Wester <Doug@geronimoenergy.com> Sent: Thursday, April 28, 2016 11:04 AM To: Rachel Leitz Subject: RE: City Council Meeting Hi Rachel, This is the best summary of the commercial terms of the contract that I was able to round up. These three sections of the contract are what sum up the true nature of the contract in regards to a cities allocation, bill credits, and also the performance guarantee. I've included snippets below, but the section itself reads pretty clearly in the contract itself. Section 3 — Sale and Purchase of Credits; Allocation • Owner shall allocate a portion of Facility Capacity to Subscriber equal to [•] percent ([•] %) of Facility Capacity (the "Allocation"). Owner shall provide to LDC the Allocation along with Subscriber's name, LDC account number(s), and service address(es) ("Subscriber Data"). Owner shall sell to Subscriber and Subscriber shall purchase from Owner, the right to receive an amount of Credits calculated on the basis of that portion of the total kilowattAC hours delivered by the Facility to LDC which corresponds to the Allocation. The Allocation shall be effective for each and every LDC Production Month (as defined in the CSG Contract) during the Term. Owner shall post Credits to Subscriber's account monthly for invoicing pursuant to Section 4 of this Agreement ("Subscriber's Monthly Credits"). Thus, where x = number of Subscriber's Monthly Credits, y = kilowattAC hours delivered in an LDC Production Month, and a = Allocation, x = y*a. Section 4 — Price and Payment • For the right to receive Subscriber's Monthly Credits generated by the Facility each month, Subscriber shall pay to Owner an amount equal to the product of (i) the corresponding Subscriber's Monthly Credits, and (ii) the Bill Credit Rate then applicable to the LDC's Solar Rewards Community Program minus one cent ($.01) (the "Monthly Allocation Payment"). Section 8 — Performance Guarantee Q Owner will provide Credits from operation of the Facility in an amount not less than ninety percent (90%) of Expected Deliveries (weather adjusted) as set forth on Exhibit B I'll follow up this email with a call to walk through this for any questions. I hope this will help bring clarity when your council discusses. Best, Doug Doug Wester Solar Garden Manager 7650 Edinborough Way, Suite 725 Edina, MN 55435 Main: 952.988.9000 Direct: 952.641.4043 Geronimo Energy