First model consistses of photowind and a regional wind farm and as provide by the two house four ordinance and the final will demand response and solar thermal and power storage to give greater depth to the model but we are confidant that the surpluses which we will tell you about shortly will improve very likely in that final model. On that point. At what point are you making sure is there a model that you are going to werent to us regarding the financial exposure to the rate pairs . Payers. The he exposure to rate payers, im not sure exactly what you mean. You want to epitomize the exposure to rate payers where is the exposure. Well that exactly if you want to tackle this, im not sure how to answer that. That mic is not working iggs. The final risk parameters with wholesale power flakbations projected with the cost of power. Is that available now. Not available right now, no. It will be in about three months. In terms of how risk is treated within the model. Colorado you want to tal
Happen along the road . Could you talk about that risky component assumption a little bit and what the risk is inherent in will. If i understand you, is that risk specific to commercial customers. Yes. Essentially it would be the same generic risk applied to residential you have large commercial customers downtown and high rises downtown consuming a big part of the energy and so they are more sensitive to fluctuation and is rates. Really though, as it would apply to residential customers, fluctuation and is rates as they occur on the market, would be greater than they will be under a regime that is based upon local fixed capital cost and is that is what the build out will do you end up with over half of the power supply in a fair short period of time. Being behind the meter and being essentially hardware and performance based rather than market or fuelbased. So, from the point of view of the commercial customer, you know, there are now over a thousand municipallies in the United States
Which actually Shows Surplus and is potential discounts for customers that sign on for this product and so there is an opportunity here to not have to answer that universal premiums where you are testing the willingness of commercial customers to pay extra we view that as a result of market because the market has been problematic over the last ten years but Energy Efficiency there are no such problems with wind farms. Its or solar its a superior environment for rate certainty and it would both offer residential customers and the city considerably less risk around the of service. That is once you have built out. Yes, we have a farrell rapid build out schedule for that very reason we would start the program obviously with 100 bought power and then, quickly, roll out local resources to hedge that and so you would have within a couple of years a significant hedge on your wholesale price of power and by your fouryear, five, year six, you are over 50 mitt gated and whatever happens in the ma
Price fluctuation, are simply a matter of whether the equipment works and so its a comparison of equipment to fuel. May be the best response would be to give us some bullets down the road and so we know how to respond to that issue and because rate pairs are going to ask that we how are we minimizing the exposure to them. Any other questions . Yeah i have another question too in the risk buts a little bit different and so my understanding is that the assumptions in had model and i guess what im really c cs local build out component is critical and i want to go on record again saying thank you for your work and your longterm commitment to this because, i think that c c a without a local build out is not a c c a program and we need to be moving towards on site generation as quickly as possible but one of the assumptionings that i think you are using is this commercial enrollment i dont know what we want to call it but the commercial participation in the program and i feel there may be so
Offer. This would apply to both the Business Community as well as residential customers. And so, as far as the approach to development we are really recommending an integrated and targeted approach to the resource rather than the market based additive approach which you have often see with conventional utility. The draft Financial Model that we preached was submitted a few months ago to the commission the power comprise is a baseline a proved concept at the mathematical willful which we are going to make more complex over the next few months the first model consistses of photowind and a regional wind farm and as provide by the two house four ordinance and the final will demand response and solar thermal and power storage to give greater depth to the model but we are confidant that the surpluses which we will tell you about shortly will improve very likely in that final model. On that point. At what point are you making sure is there a model that you are going to werent to us regarding