RENO, Nev., March 24, 2015 (GLOBE NEWSWIRE) -- Ormat Technologies, Inc. (NYSE:ORA) announced today that its subsidiary entered into a 20-year Power Purchase Agreement (PPA) with Southern California Public Power Authority (SCPPA) for interstate delivery of electricity from the second phase of Don A. Campbell in Mineral County, Nevada.
Under the terms of the PPA with SCPPA, the second phase of the Don A. Campbell project will receive a rate of $81.25 per megawatt hour with no annual escalation. SCPPA will resell the power to Los Angeles Department of Water and Power (LADWP). As with the existing Don A. Campbell geothermal plant, electricity from the new project will be transmitted to the LADWP grid via NV Energy's statewide transmission system, including the One Nevada Transmission Line that connects service areas in both northern and southern Nevada.
Ormat recently announced the release of the project for construction, and expects it to generate up to 19 MW (net) on a yearly average basis, above the PPA nominal target of 16.2 MW. Commercial operation is expected in the first quarter of 2016. Northleaf Capital Partners, Ormat's new joint venture investor, will purchase approximately 40% interest in the project which will be added to the existing ORPD joint venture once the project is completed and commissioned.
"This PPA marks our fourth PPA with SCPPA and we are delighted by our continued relationship with LADWP, the nation's largest municipal utility," says Isaac Angel, Chief Executive Officer of Ormat. "We look forward to providing California access to another cost-effective and reliable renewable energy resource."
"We are very pleased to partner once again with Ormat Technologies and SCPPA on the second phase of the Don A. Campbell Geothermal Power Plant, which will provide a long-term reliable renewable power supply for Los Angeles. Geothermal power is critical to reaching our goal of 33% renewable energy by 2020, while transitioning away from coal power," LADWP General Manager Marcie Edwards said.
About Ormat Technologies, Inc.
With five decades of experience, Ormat Technologies, Inc. is a leading geothermal company and the only vertically integrated company solely engaged in geothermal and recovered energy generation (REG). The company owns, operates, designs, manufactures and sells geothermal and REG power plants primarily based on the Ormat Energy Converter - a power generation unit that converts low, medium, and high-temperature heat into electricity. With 69 U.S. patents, Ormat's power solutions have been refined and perfected under the most grueling environmental conditions. Ormat has 470 employees in the United States and over 600 overseas. Ormat's flexible, modular solutions for geothermal power and REG are ideal for the vast range of resource characteristics. The company has engineered, manufactured and constructed power plants, which it currently owns or has installed to utilities and developers worldwide, totaling over 1,900 MW of gross capacity. Ormat's current 647 MW generating portfolio is spread globally in the U.S., Guatemala and Kenya.
Ormat's Safe Harbor Statement
Information provided in this press release contains statements relating to current expectations, estimates, forecasts and projections about future events that are "forward-looking statements" as defined in the Private Securities Litigation Reform Act of 1995. These forward-looking statements generally relate to Ormat's plans, objectives and expectations for the share exchange, the related restructuring of the Ormat corporate group and the anticipated consequences of the transaction and are based upon its management's current expectations. These forward looking statements include, among others, the benefits that Ormat Technologies believes the transaction will create, including those related to expected cost savings, enhanced liquidity, synergies, corporate visibility and identity. Actual future results may differ materially from those projected as a result of certain risks and uncertainties.
These forward-looking statements are made only as of the date hereof, and we undertake no obligation to update or revise the forward-looking statements, whether as a result of new information, future events or otherwise.