Laserfiche WebLink
The following assumptions were used in the incentive calculation: <br />® The electric rate for UMC will be the Large General Services — Secondary rate tariff schedule <br />® For the duration of the incentive period, which is defined as the first five years of operation, the <br />following apply: <br />o the minimum monthly rate is $218.40 <br />o the cost per kWh is $0.0102 <br />o the demand threshold Is $3.44 per kW <br />® As provided to the City by UMC for the purposes of this incentive calculation, during the first <br />three of operations, the load would be 4,000 INA with a load factor of 60% <br />® In years four and five of operation, the load increases to 8,500 INA with a load factor of 60% <br />® Throughout the five year initial period, the power factor would be neither less than 0.97 lagging <br />nor 0.97 leading. <br />• The bond rate is 3.25%. <br />The investment ratio, defined as the three year average of the ratio of the utility's principal and interest <br />payments to revenue streams less pass through costs, is 19.77%. <br />The anticipated loads result in energy delivery to UMC of 152,424,000 I<Wh. The revenue derived by the <br />City from these sales produces $2,764,948.80. Applying the investment ratio to the revenue derived <br />results in a maximum incentive of $546,630.38. <br />The Incentive Repayment shall be calculated as the incentive amount, with compounded interest at the <br />City's bond rate, in the amount of $641,422.31 shall be paid by UMC to the City if UMC fails to use at <br />least 152,424,000 kWh of electric power during the Term of this Agreement or fails to maintain an <br />annual average power factor of at least 97% in any year during the Term hereof. <br />Page 1 <br />