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Collateral <br /> The collateral of the project will be a pledge of the net revenue of the project. Net revenue is defined as <br /> the gross revenue (power purchase agreement payment) less operating costs. The power purchase <br /> agreement with MPEI will be for 30 years and will coincide with the repayment period of the project. <br /> Schedule <br /> An anticipated project schedule is shown on Figure 9. The near-term schedule is to finalize the LOPP, <br /> finalize the power purchase contract, obtain a firm turbine equipment quote, and close on the project <br /> loan by October 2014. The turbine equipment would be ordered by late 2014. The powerhouse and <br /> penstock would be constructed in Summer/Fall 2015 and the project would be operational by May 2016. <br /> 2014 2015 2016 <br /> Activity M A M J J A S O N D J F M A M J J A S O N D J F M A M J <br /> Financing <br /> Submit Loan Application <br /> CWCB Board Approval <br /> Loan Finalization immir <br /> MPEI PPA <br /> Reclamation <br /> Enviro.CE <br /> Negotiate LOPP aka <br /> CH2MHill Design <br /> Penstock Design WWI <br /> Powerhouse Design <br /> Turbine Procurement <br /> Finalize Price and Specs. <br /> Order Turbine <br /> Manufacture Equip. <br /> Receive Turbine <br /> Construction <br /> Select Contractor <br /> Powerhouse <br /> Penstock <br /> Misc.Indoor <br /> Install Turbine <br /> Testing <br /> Online <br /> Figure 9- Project Schedule <br /> Opinion of Feasibility Study <br /> Northern Water believes that the Granby Hydro project is both technically and economically feasible. <br /> Northern Water has had two years of operating experience with the Carter Lake Hydro project and has <br /> gained substantial implementation and operating experience. Northern has the necessary staff to ensure <br /> that the plant is maintained and operated in an exceptional manner. The ongoing engineering work <br /> performed by CH2MHi11 demonstrates the technical feasibility of the project. Finally, based upon a <br /> conservative view of project generation output, power purchase rates, and ongoing expenses, the project <br /> will be able to at least break even during the loan repayment period, and most likely will accumulate <br /> excess revenue. Based upon this information, the Northern Water Board voted unanimously at this <br /> March 14, 2014 Board meeting to move forward with the project. <br /> 14 <br />