VEC Stats Serve 10,000 members 11,500 meters 2,100 miles of line 5 members / mile 28 employees 7 counties (Vernon, LaCrosse, & Monroe)

VEC Stats

Serve 10,000 members 11,500 meters2,100 miles of line5 members / mile28 employees7 counties (Vernon, LaCrosse, & Monroe)

STRATEGIC PLAN

Customer Service / Communications

Technology

Rates – Retail rates and Wholesale Power Expense

Renewable Energy – Trusted experts & be fair to all members

VEC Solar Projects

Community Solar Project Chose Clean Energy Collective

Turned into 2 projects DPC 500 kW – 60 homes $1.5 m Community Solar Project 305 kW

No member subsidy (fairness) No money investment from VEC Education for all of us

Solar Array Photo Simulation

VEC Community Solar First in Wis. Currently the largest in Wis. 305 kW Lowest cost in country (<$2 / watt) First to pay less than retail rate 12 to 13 year payback SOLD OUT THE FASTEST IN U.S.

$600 Panel

One panel – 400 kWh / year estimated Paying 10¢ a kWh

$38 year (based on sun, $3.16 monthly credit on electric bill)$2 escrowed for maint. & insurance

Escalation for rate increases 12 – 13 year payback 6% X $600 = $36Estimate life of 25 years

VEC Community Solar Farm

1,000 305-W DC (250 AC) solar panels 921 for sale to members (113)FIRST COME BASIS! SOLD OUT!!! 79 owned by VEC

$671 Per panel ($2.20 watt) cheap! -$71 Do Watt$ Right Rebate $600 Lowest per watt community

Cost (< $2 watt)

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VERNON ELECTRIC COOPERATIVE

Panel Signing Event

Community Solar Farm ** FAIRNESS **9.5 cents per kW credit on electric bill .5 cents per kWh to maintenance escrow account

Limited to annual kWh usage Paying 3 to 5 cents more than we can buy wholesale

Make up by peak demand savings, 79 panels we own, and set up our own Evergreen Fund.

VEC Solar Projects

Economies of scale Upfront revenue Lower our peak demand Provide green energy to our members Allow us to pay less than retail rate – no

rate subsidization Education Allow more members to own solar Develop options to members – not for

everyone

WHY COMMUNITY SOLAR

Experts Education Allow members to own green

energy Hedge against rising electric rates One-time offer until sold out Wind didn’t fit our needs

Nation’s leading community solar provider: Community solar facilities in 7 states, delivering 10+ MW of capacity

(over 40,000 solar panels) Nearest solar facility - Rockford, Minnesota (Wright– Hennipen Co-

operative Electric Association) Built nation’s first community-owned solar array in 2010 (78 kW) Built nation’s largest in 2011 (858 kW) and new largest in 2012 (1.12

MW)

Lessons Learned 10X more complex than I thought Tax, legal, PPA, ….devil in the details Use a renewable energy attorney Keep your board informed SWOT helped our board and staff Don’t set precedents How much control do you want Don’t know what the price point is ($600 - $1,000) Most members love the idea Why not paying retail rate? Limit number of panels purchased Negotiate – Negotiate – Negotiate Some members can’t use 30% tax credits so

community solar is a cheaper option for them

TODAY

Happy members Sparked an interest in solar Value of solar for Net-metering

MONTHLY BILL CREDIT / PANEL

June 14 July 14 August 14 Sept 14 Oct 14 Nov-14 Dec-14$0.00

$1.00

$2.00

$3.00

$4.00

$5.00

$6.00

$4.77

$3.62 $3.51

$2.92

$2.21

$1.21$0.97

VERNON ELECTRIC COOPERATIVE

Mowing grass with “wool” power