1. Madison Elementary School District Solar Purchase Power Agreement 12/04/12 Extraordinary Learning for All

2. Energy in Madison Madison Spent Over $1,300,000 – 11/12 Madison Spent Over $1,300,000 – 11/12 4.4% of Maintenance & Operation Budget 4.4% of Maintenance & Operation Budget Energy Saving Measures Implemented: Energy Saving Measures Implemented: Lighting Lighting HVAC HVAC Windows Windows Roofing Roofing Energy Management Systems Energy Management Systems

3. APS Incentive Programs Schools and Government Program Schools and Government Program Madison #1 Madison #1 Park Park Rose Lane Rose Lane Commercial Program Commercial Program Meadows Meadows District Office District Office Heights Heights Rose Lane/Bus Yard Rose Lane/Bus Yard

4. Solar Power Purchase Agreement (PPA) No ownership cost to Madison No ownership cost to Madison Madison enters into PPA to purchase solar electricity (rates lower than those of APS) Madison enters into PPA to purchase solar electricity (rates lower than those of APS) Owner (Tioga Energy): Owner (Tioga Energy): Develops Develops Builds Builds Owns Owns Operates Operates Maintains Maintains

5. Energy Savings 20 Year PPA Term Agreement 20 Year PPA Term Agreement $0.08 / kWh $0.08 / kWh Projected Annual Savings (No rate increase from current provider) Projected Annual Savings (No rate increase from current provider) $55,600 $55,600 Projected 20 Year Savings Projected 20 Year Savings $1,077,103 $1,077,103

6. Solar PPA Terms Early Purchase Options: Early Purchase Options: 7 th, 10 th, and 15 th Anniversary – Commercial Operation Date 7 th, 10 th, and 15 th Anniversary – Commercial Operation Date Fair Market Value Fair Market Value Owner of System receives APS Incentive Credit Owner of System receives APS Incentive Credit $0.123 / kWh –15 year term $0.123 / kWh –15 year term $331,000 in annual incentives $331,000 in annual incentives Maintenance Agreement Maintenance Agreement

7. Recommendation Give authorization to finalize contract for PPA with Sky Engineering Give authorization to finalize contract for PPA with Sky Engineering Contract Language Contract Language

8. Thank you-