HomeMy WebLinkAbout6.c. Amendment to a Community Solar Garden Subscription
EXECUTIVE SUMMARY
City Council Regular Meeting: June 2, 2020
AGENDA ITEM: Amendment to a Community Solar
Garden Subscription
AGENDA SECTION:
Consent
PREPARED BY: Anthony Nemcek, Planner AGENDA NO. 6.c.
ATTACHMENTS: Subscription Agreement; Subscription
Agreement Amendment APPROVED BY: LJM
RECOMMENDED ACTION: Motion to approve the Subscription Agreement Amendment.
BACKGROUND
In April, 2017, the City of Rosemount entered into a subscription agreement with Oak Leaf Energy
Partners to purchase energy produced by a community solar garden. The savings the City derives from the
subscription are a result of Xcel Energy providing bill credits on the City’s invoices with them.
The Carpenter’s Union solar garden that this particular subscription contract is with has been considered
ineligible by Xcel Energy to receive their Enhanced Applicable Retail Rate (ARR). To ensure that the City
of Rosemount is able to realize the savings agreed upon in the first subscription year it’s necessary to
adjust the starting subscription rate of the Subscriber Agreements.
This amendment reduces the subscription rate from $0.094/kwh to $0.078/kwh for production from the
City’s subscribed capacity in the Carpenter’s Union CSG. The proposed subscription rate is based on the
discount the City of Rosemount should have received based on the initial Enhanced Bill Credit Rate.
RECOMMENDATION
In order to ensure the City can see the savings that were anticipated at the time the Subscription
Agreement was approved, staff is recommending the City Council approve the amendment to the
subscription agreement.
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FIRST AMENDMENT
TO
COMMUNITY SOLAR GARDEN SUBSCRIPTION AGREEMENT
THIS FIRST AMENDMENT TO COMMUNITY SOLAR GARDEN SUBSCRIPTION
AGREEMENT (this “First Amendment”) is made and entered into as of December ____, 2019,
by and between the City of Rosemount, Minnesota (“Subscriber”), and Oak Leaf Solar XIX
LLC (“Operator”). Subscriber and Operator are referred to herein as a “Party” or the “Parties”,
individually or collectively, as appropriate. Each capitalized term set forth in this First Amendment
that is not otherwise defined herein shall have the meaning ascribed to it in the Agreement.
WHEREAS, Subscriber and Oak Leaf Solar XIX LLC entered into that certain Community
Solar Garden Subscription Agreement, dated April 17, 2017 (the “Agreement”);
WHEREAS, due to the System’s ineligibility to receive the Standard Bill Credit Rate and
the Enhanced Bill Credit Rate, the Subscriber’s kWh Rate was incorrectly calculated within the
Agreement as “$.094_per Kilowatt Hour”;
WHEREAS, the Parties desire to amend the Agreement as herein stated;
NOW, THEREFORE, in consideration of the terms, conditions and covenants contained
herein, and of certain other good and valuable consideration, the receipt and sufficiency of which
are hereby acknowledged, Subscriber and Operator hereby agree as follows:
1. Section 6.1. The first paragraph of Section 6.1 of the Agreement is hereby deleted in its
entirety and replaced with the following:
“Consideration. Subscriber shall pay to Operator a monthly payment (“Payment”)
for Subscriber’s Allocated Percentage of Delivered Energy beginning on the Commercial
Operation date and continuing through the Term. The Subscriber will pay a price of
$0.0776 per kilowatt hour (“kWh Rate”) for its Allocated Percentage of the Delivered
Energy up to but limited to the amount of kWhs for which the Subscriber receives Bill
Credits. The kWh Rate will increase 2% per year. The kWh Rate shall not change if the
value of the Environmental Attributes change for the Operator.”
2. Acknowledgment and Agreement . Operator hereby acknowledges and agrees that the
Agreement is hereby amended and shall be deemed effective as of April 17, 2017.
3. Effect of First Amendment . Except as modified by this First Amendment , the terms of the
Agreement continue in full force and effect. In the event of a conflict or ambiguity between
this First Amendment and the Agreement, this First Amendment will control.
4. Entire Agreement . This First Amendment and the Agreement constitutes the entire
agreement of the Parties. First Amendment shall not be modified except in writing
subscribed by the Parties hereto. Except as modified by this First Amendment , the terms
of the Agreement continue in full force and effect.
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5. Severability. If any provision or provisions of this First Amendment shall be held invalid,
illegal, or unenforceable, then the validity, legality, and enforceability of the remaining
provisions shall in no way be affected or impaired thereby and the Parties shall negotiate
in good faith to restore insofar as practicable the benefits to each Party that were affected
by such ruling.
6. Counterparts. This First Amendment may be executed in one or more counterparts, each
of which shall be deemed an original and all of which shall be deemed one and same
agreement. Delivery of an executed counterpart of this First Amendment by facsimile or
PDF transmission will be deemed as effective as delivery of an originally executed
counterpart.
7. Governing Law. This First Amendment shall be deemed made and prepared and shall be
governed, construed and interpreted in accordance with the laws of the State of Minnesota.
[SIGNATURES ON THE FOLLOWING
PAGE]
IN WITNESS WHEREOF, the Parties hereto have executed this First Amendment as of the day
and year first above written.
Operator: Subscriber:
Oak Leaf Solar XIX LLC City of Rosemount, Minnesota
By:____________________________ By:_____________________________
Name:_________________________ Name:________________________
Title: _______________________ Title:_________________________