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The Madison Elementary School District has partnered with Tioga Energy to implement a Solar Power Purchase Agreement (PPA), allowing the district to purchase solar electricity at rates lower than those of APS. This initiative, costing over $1.3 million and comprising 4.4% of the maintenance and operation budget, is projected to save $1,077,103 over 20 years. With a 20-year term and maintenance management through APS incentive programs, this arrangement also includes multiple early purchase options. Energy-saving measures included are lighting, HVAC upgrades, and energy management systems.
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Madison Elementary School District Extraordinary Learning for All Solar Purchase Power Agreement 12/04/12
Energy in Madison • Madison Spent Over $1,300,000 – 11/12 • 4.4% of Maintenance & Operation Budget • Energy Saving Measures Implemented: • Lighting • HVAC • Windows • Roofing • Energy Management Systems
APS Incentive Programs • Schools and Government Program • Madison #1 • Park • Rose Lane • Commercial Program • Meadows • District Office • Heights • Rose Lane/Bus Yard
Solar Power Purchase Agreement (PPA) • No ownership cost to Madison • Madison enters into PPA to purchase solar electricity (rates lower than those of APS) • Owner (Tioga Energy): • Develops • Builds • Owns • Operates • Maintains
Energy Savings • 20 Year PPA Term Agreement • $0.08 / kWh • Projected Annual Savings (No rate increase from current provider) • $55,600 • Projected 20 Year Savings • $1,077,103
Solar PPA Terms • Early Purchase Options: • 7th, 10th, and 15th Anniversary – Commercial Operation Date • Fair Market Value • Owner of System receives APS Incentive Credit • $0.123 / kWh –15 year term • $331,000 in annual incentives • Maintenance Agreement
Recommendation • Give authorization to finalize contract for PPA with Sky Engineering • Contract Language