RENO, Nev., March 20,
2013 /PRNewswire/ -- Ormat Technologies, Inc. (NYSE: ORA) announced
today that in April 2013 it will begin selling up to 14 MW of
geothermal power from the G3 plant in the Mammoth Complex in
California to Pacific Gas &
Electric (PG&E) under a new 20 year power purchase agreement
(PPA) . Deliveries under a separate PPA for up to 7.5 MW of
geothermal power from the G1 plant in the Mammoth complex are
expected to start by the end of 2013.
(Logo:
http://photos.prnewswire.com/prnh/20040422/LATH066LOGO)
Management anticipates that the switch to the new 20-year PPA's
with improved rates that are secured until 2033 will significantly
improve the company's profitability from this complex as they will
replace the variable rates under the current Standard Offer #4
PPAs, which are based on the short run avoided cost (SRAC) energy
rate that is tied to natural gas prices.
On March 15, 2013, Ormat finalized
the agreement with Southern California Edison (SCE), by which the
current G1 and G3 Standard Offer #4 PPAs will terminate. Under the
agreement, Ormat will continue to sell power from G2, the third
plant of the Mammoth complex, under its existing PPA with SCE, with
the term of the contract extended by an additional six years until
early 2027. The agreement also calls for Ormat to pay SCE a
one-time early termination fee of approximately $9 million. The fee will be recorded as an
expense in the first quarter of 2013.
Yoram Bronicki, president and
chief operation officer of Ormat, stated: "Completing this deal is
a very important accomplishment for the company and reflects its
strategy of having long term fixed rates PPAs with no volatility.
We mark this event as part of our continuing efforts to improve
profitability."
Yoram added: "We are delighted to add PG&E to our customer
base in California that have come
to rely on us for our reliable, firm and flexible geothermal power.
I would also like to thank the professional teams at SCE and
PG&E for their hard work and cooperation in this complicated
transaction."
About Ormat Technologies
With over four 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 over 82 U.S. patents, Ormat's power solutions have been
refined and perfected under the most grueling environmental
conditions. Ormat's flexible, modular solutions for
geothermal power and REG are ideal for the vast range of resource
characteristics. The company has engineered and built power
plants, which it currently owns or has supplied to utilities and
developers worldwide, totaling approximately 1600 MW of gross
capacity. Ormat's current generating portfolio of 575 MW (net)
includes Brady, Brawley,
Heber, Jersey Valley, Mammoth,
McGinness Hills, Ormesa, Puna, Steamboat, Tuscarora, OREG 1, OREG 2, OREG 3 and OREG 4
in the U.S.; Zunil and Amatitlan in Guatemala; Olkaria III in Kenya; and, Momotombo in Nicaragua.
Ormat's Safe Harbor Statement
Information provided in this press release may contain
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 future
operations and are based upon its management's current estimates
and projections of future results or trends. Actual future results
may differ materially from those projected as a result of certain
risks and uncertainties. For a discussion of such risks and
uncertainties, see "Risk Factors" as described in Ormat
Technologies, Inc.'s Annual Report on Form 10-K filed with
the Securities and Exchange Commission on March 11,
2013.
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.
Ormat
Technologies
Contact:
|
Contact:
Investor Relations Contact:
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Dita
Bronicki
|
Todd
Fromer/Rob Fink
|
CEO
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KCSA
Strategic Communications
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775-356-9029
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212-896-1215(Todd)/212-896-1206 (Rob)
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dbronicki@ormat.com
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tfromer@kcsa.com / rfink@kcsa.com
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SOURCE Ormat Technologies, Inc.