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AGENDA RECOMMENDATION |
Consent Calendar 6.E.
City Council Regular Meeting
- Meeting Date:
- 08/26/2024
Agenda Item:
Resolution authorizing the City Manager to enter into a modified Low-and-Moderate Income Community Solar Program Subscription Agreement with Cooperative Energy Futures Community Solar, LLC.
Recommendation/Action(s):
Adoption of the attached resolution.
Summary:
In January 2023, the City of Mankato entered into a subscription agreement with Cooperative Energy Futures for the City of Mankato to be a back-up scriber for low and moderate income households and renters. The project is planned to allow low-income households and renters to subscribe to the community solar project. To allow for the expanded eligibility for subscribers, the City entered into an agreement to provide “back up” demand to ensure that all the solar power is allocated.
Legislation adopted by the State of Minnesota in 2023 modified the Low-and-Moderate Income Community Solar program from being administered by Xcel Energy to the Minnesota Department of Commerce. This legislation went into effect in February 2024. The new legislation allows the project to provide deeper financial savings both to the City of Mankato and to local residents compared to the original agreement.
The project is now under construction and expected to begin operating later this year. As Cooperative Energy Futures (CEF) moves through the construction process, the existing subscribers, including the City’s back-up subscription, need to be updated to match the requirements of Minnesota's new Low-and-Moderate Income community solar program.
In addition to the improved rates, this also means that the Subscription Agreement was revised to meet the process as approved by the Department of Commerce.
Summary of changes from the previous agreement are:
Staff recommends entering into the modified agreement to continue to provide opportunities for Low-and-Moderate Income subscribers to participate in community solar gardens.
Legislation adopted by the State of Minnesota in 2023 modified the Low-and-Moderate Income Community Solar program from being administered by Xcel Energy to the Minnesota Department of Commerce. This legislation went into effect in February 2024. The new legislation allows the project to provide deeper financial savings both to the City of Mankato and to local residents compared to the original agreement.
The project is now under construction and expected to begin operating later this year. As Cooperative Energy Futures (CEF) moves through the construction process, the existing subscribers, including the City’s back-up subscription, need to be updated to match the requirements of Minnesota's new Low-and-Moderate Income community solar program.
In addition to the improved rates, this also means that the Subscription Agreement was revised to meet the process as approved by the Department of Commerce.
Summary of changes from the previous agreement are:
- The new agreement is in the required Low-and-Moderate Income format from MN Department of Commerce.
- Completion of the MN Department of Commerce subscriber information disclosure form.
- The estimated production, subscription payment rate, and subscription benefits have been updated. See Exhibit A of the attached subscription agreement.
Staff recommends entering into the modified agreement to continue to provide opportunities for Low-and-Moderate Income subscribers to participate in community solar gardens.