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A-4. Review Community Solar Garden Proposal from Minnesota Community Solar
` 1 Y 0 A _ 1 CITY,0. CITY OF ClIANIIASSEN _____. z dw 0 Chanhassen isa Community for Life-Providing for Today and Planning for Tomorrow HK MEMORANDUM TO: Mayor& City Council FROM: Greg Sticha, Finance Director DATE: October 23, 2017 0 SUBJ: Solar Garden Proposal BACKGROUND The City of Chanhassen is currently participating in one Solar Garden(Blue Lake Facility, Oak Leaf Energy) and has executed a second subscription agreement with US Solar for participation in a second agreement (location under construction). The participation of those two subscriptions brings the total eligible electrical load the city participates to about 30%. The locked rates the city is paying for participation in those two gardens is $0.1179 & $0.1143 per kilowatt hour(kWh). The city has been approached by Minnesota Community Solar out of St. Paul,MN for participation in a third solar garden. The proposal is similar to the other two agreements the city has executed with a fixed rate and no escalator on the cost of the energy purchased. The rate proposed of$0.11296/kWh would be slightly cheaper than the rate the city is currently paying at the Blue Lake Facility($0.1143/kWh). MN Community Solar has offered participation of up to 1,000,000 kWh, which would amount to approximately another 20% of the city's entire eligible electrical load. The city could consider participation at a smaller amount than the proposed 1,000,000 kWh. The estimated Net Present Value Savings on 1,000,000 kWh would be $564,000 over the next 25 years. Staff will be reviewing the current solar garden environment and the impact on any other future potential proposals. RECOMMENDATION Staff is looking for direction on participating in an additional solar garden subscription agreement with MN Community Solar. If council would like to participate, an indication to staff about what level of participation would be needed. Staff would then have a subscription agreement reviewed by the city attorney and it would be placed on an upcoming agenda for city council action. ATTACHMENT 1. MN Community Solar Proposal. f:\gregs\solar gardens\mn coPH ;lilt,22; 1002.3{ ci,chanhassen.mn.us• FX 952.227.1110 7700 MARKET BOULEVARD • PO BOX 147 • CHANHASSEN • MINNESOTA 55317 W �= 1' —J 4t Q :yq't pr_ : ' Z W CI LL 00 La V • o� 491 .s4 ! . Ott , _ — ft3 le in .,, O ' o Q ' rz4 Cl. 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