Here’s a quote from the Solar Panel proposal that the Sewer Board signed.
“After purchasing the Solar energy system from Investor, NWA will be able to realize the full economic value of the energy produced by the Solar energy system, because it will no longer have to pay for energy produced by the solar energy system.”
And before Sewer Board buys the system? Before they buy the system they pay for every watt produced by the Chinese Solar Panels. The agreement should have been written:
“The Sewer Board will purchase and pay the investor for all of the electricity produced by the Chinese Solar Panels. The rest of the electricity used by the Sewer Board will be supplied by PECO.”
The investor gets 100% of the Solar Electricity. Surprised?
How did the Sewer Board agree with such a bad deal? How did it get past the attorney?
It gets worse. The Investor owns 100% of the Solar Electricity, sells it to PECO, collects from PECO then sells it to the Sewer Board. The Investor collects 46%, say that’s 46 cents on the dollar, from PECO and 80 cents on the dollar from the Sewer Board. The Investor collects $1.26 on the dollar. That’s also 126%. How much does the Incestor spend on electricity? The Sewer Board uses 100% but the Solar Panels produce 46% therefore PECO provides the remaining 54%. The Investor pays for the 54% and collects 126%. You can calculate the profit. Profit based on income equals 126, minus costs, 54, which is 72, which is then divided by 126. That’s 57% profit. If, however the profit is calculated based on expense it’s 126 divided by 54 which is obscene. The investor collects 126 and spends 54. That’s a return of 72 on a cost of 54 which is 133%. Another way to calculate profit is based on the gross income. that’s how a standard Profit and Loss sheet is prepared. Take the income, 126 and divide the 126 by the profit, 54 which gives 2.33. That’s a 233% return on the money spent on electricity. That’s obscene.