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6. Schedule of Savings
<br />The total energy cost avoidance over the Term of the contract is equal to or greater than $4,327,516 as defined in
<br />the table below:
<br />COST AVOIDANCE
<br />Anticipated
<br />Anticipated
<br />Anticipated
<br />YEAR
<br />Energy
<br />Operational
<br />Total
<br />GUARANTEED
<br />1
<br />$366,171
<br />$0
<br />$366,171
<br />$288,501
<br />2
<br />$366,171
<br />$0
<br />$366,171
<br />$288,501
<br />3
<br />$366,171
<br />$0
<br />$366,171
<br />$288,501
<br />4
<br />$366,171
<br />$0
<br />$366,171
<br />$288,501
<br />5
<br />$366,171
<br />$0
<br />$366,171
<br />$288,501
<br />6
<br />$366,171
<br />$0
<br />$366,171
<br />$288,501
<br />7
<br />$366,171
<br />$0
<br />$366,171
<br />$288,501
<br />8
<br />$366,171
<br />$0
<br />$366,171
<br />$288,501
<br />9
<br />$366,171
<br />$0
<br />$366,171
<br />$288,501
<br />t0
<br />$366,171
<br />$0
<br />$366,171
<br />$288,501
<br />11
<br />$366,171
<br />$0
<br />$366,171
<br />$288,501
<br />12
<br />$366,171
<br />$0
<br />$366,171
<br />$288,501
<br />13
<br />$366,171
<br />$0
<br />$366,171
<br />$288,501
<br />14
<br />$366,171
<br />$0
<br />$366,171
<br />$288,501
<br />15
<br />$366,171
<br />$0
<br />$366,171
<br />'$288,501
<br />TOTALS
<br />$5,492,563
<br />$0
<br />$5,492,563
<br />$4,327,516
<br />or the sum of the Retrofit and Support Costs for such Guarantee Year, whichever is less. Provided further, in no
<br />event shall the savings guarantee provided herein exceed the total installation, maintenance, and financing costs for
<br />the Work under this Agreement. The energy cost avoidance will be calculated and reconciled annually.
<br />An annual electric utility rate escalation of 0% is stipulated and agreed upon by the City. The calculation of
<br />energy cost avoidance is based upon the escalated guarantee year utility rate or the actual guarantee year utility
<br />rate, whichever provides the best energy cost avoidance. Energy cost avoidance may also include, but is not
<br />limited to, Savings from demand charges, power factor correction, taxes, ratchet charges, rate changes and other
<br />utility tariff charges that are reduced as a result of the ESCO involvement.
<br />The Term of this contract is for 15 years.
<br />The Baseline Period is defined as 11/2008 to 10/2009. Baseline energy usage can be found in Schedule E -
<br />Baseline.
<br />The Baseline Utility Rates are: Electricity Duke Energy, various rates
<br />Natural Gas Duke Energy, general commercial rate
<br />Schedule C Page 9
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