Why does the price of electricity rise over time under the terms of the PPA when the cost of sunshine does not change?
A. It’s really a question of making the economics work. We could have rates remain flat or even possibly decrease over time; however, we would need a financial model that would make it economically viable for Tioga and our investor groups. We completely expect that utility electricity rates will continue to rise, perhaps aggressively, and therefore a fixed rate escalator that is likely to be lower than the utility rates is a sound and common way to structure the agreement.
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