April 24, 2015 at 4:00 PM - Superintendent's Weekly Update to the Board of Education
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1. Solar Power Project with Olson Energy Corporation
Description:
I continue to research and work on the possibility of solar panels. This afternoon I visited with Paul Helstrom from Minnesota Power. I ran some thoughts by him about what I'd place into a contract. He added a few suggestions of his own. Our Contract Requirements: 1. We agree to pay the investors $0.0569 /kWh for the energy produced by the solar panels. They originally had the rate set at $0.08/kWh. You can now see in the attached cash flow document they adjusted it down. 2. We agree to pay the investors $10,000/year from year 7 through 16. A total of $100,000 over ten years. You can see this in the cash flow document. 3. There will be no other costs or expenses to the Royalton School District. All of the equipment will be handed over to the school district after the 1st quarter of the 6th year. The school attorney would work on this and all other language and dollar figures. 4. The investors will pay all installation and materials costs. Total approximate installation cost is $1,792,800. 5. The investors will pay all interconnection, engineering, and O & M costs. Then, we should be good! Something to know.... In the second attached document Paul at Minnesota Power (MP) illustrated a close examples of how we'd pay the investors and MP for power. His two sample tables use available weather data from Little Falls and St. Cloud. You will find in both tables the total usage and demand peak data are identical. This is actual data of our usage from 2014. The estimated production is what the solar panels will generate in power each month. The net meter reading is what we'd actually be using in energy consumption each month. The kWh bank is the difference each month between the estimated production (energy produced by solar panels) and net meter reading (our energy consumption). The school district would pay the investors for all the energy the solar panels produce at a rate of $0.0569/kWh. This is found in the estimated production column. In January, February and March the solar panels will not produce enough energy to meet our consumption needs. We buy the excess needs from Minnesota Power, which currently is about the $0.0569/kWh. The cost with Minnesota Power will fluctuate as it does now. In months April through December the solar panels will produce more energy than is needed. You can find this in the net neter reading column. They are the figures with a negative sign in front. We pay the investors for all production (above what is needed for our consumption) at the same rate of $0.0569/kWh. At the end of the calendar year there will be an amount of kWh built up in a bank. We will sell back the excess energy to Minnesota Power at a reduced rate of approximately $0.037/kWh. If you're still following along you'll see in the Little Falls table -66101 is the bank of remaining energy we'd be paid out at 66,101 x $0.037 = $2,445.74 We'll have paid the investors over the course of the year 66,101 x $0.0569 = $3,761.15 So in this scenario we'd pay the investors $1,315.41 more for energy we did not use. Really not a big deal. Please give me a call with any questions. I'll add this to the special board meeting for discussion on Monday, May 11. |
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2. Schedule of Upcoming Committee and Special Board Meetings
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3. Approval of Weekly Building Project Quotes and Proposals
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Please see attached the weekly building project quotes and proposals for approval. |
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4. Approval of Weekly Bills
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Please see attached the weekly bills for your approval. |