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Wind
Revenue Policy
Policy E-79
Effective Date: May 29, 2014
Wind Energy Revenue Policy P-79 (continued)
MUNICIPALITY OF THE DISTRICT OF CHESTER
WIND ENERGY REVENUE POLICY
POLICY P-79
PURPOSE
The Municipality of the District of Chester (Municipality) will have additional sources of revenue
from wind energy commencing in 2014/15. To prepare the Municipality for this revenue and
ensure a sustainable investment for years to come, it is prudent to have a plan in place to account
for its expenditure.
SOURCES OF REVENUE
One source of wind energy revenue is the Municipality's own wind turbine located at Kaizer
Meadow through the COMFIT program. From the financial model at the time of construction it is
anticipated the Municipality will see an annual net income ranging from $100,000 to $200,000 in
the first 10 years, $200,000 and $300,000 in the following 5 years, with the last 5 years of the
agreement generating between $550,000 and $600/000 per year.
The second source of wind energy revenue is the South Canoe Wind Farm, located adjacent to the
Kaizer Meadow site, which is expected to be constructed in 2014, with energy production
commencing in 2015. With the anticipated number of wind turbines to be 34, the annual source of
revenue through taxation is expected to be in the $600,000 plus range with a cost of living increase
in each subsequent year.
POLICY
The policy of the Municipality will be that:
• One-third of the revenue will be used to fund economic development programs in the
Municipality;
• One-third will be invested in operating reserves; and
• One-third will be designated for community based projects/infrastructure.
Recommendation to Adopt - Audit and Budget Committee - April 28, 2014 (2014-196)
First Notice -Council - May 15, 2014 (2014-204)
Second Notice - Council - May 29, 2014 (2014-230)
Effective Date - May 29, 2014 Page 2
Wind Energy Revenue Policy P-79 (continued)
Annotation for Official Policy Book
Notice of Intention to Adopt
April 28, 2014
2014-196
Date of First Notice at Council
May 15, 2014
2014-204
Date of Second Notice at Council
May 29, 2014
2014-230
Effective Date
May 29, 2014
I certify that this Policy was adopted by Council as indicated above.
7 t' June 3 2014
Pamela M. Myra, Mu icipal Clerk Date
Recommendation to Adopt - Audit and Budget Committee - April 28, 2014 (2014-196)
First Notice -Council - May 15, 2014 (2014.204)
Second Notice - Council - May 29, 2014 (2014-230)
Effective Date - May 29, 2014 Page 3