Ormat Reduces Exposure to Natural Gas Prices With New 10-Year Power Purchase Agreement for Heber 1
06 Setembro 2013 - 6:12PM
Ormat Technologies, Inc. (NYSE:ORA) announced today that it entered
into a 10-year Power Purchase Agreement (PPA) with Southern
California Public Power Authority (SCPPA) to deliver electricity
from its Heber 1 geothermal power plant at the Heber complex in
Imperial Valley, California beginning December 16, 2015. The
current PPA with Southern California Edison will expire December
15, 2015.
"This new contract with SCPPA aligns with our overall strategy
to replace the more volatile Standard Offer Contract No. 4 (SO#4),
which is tied to natural gas prices, with fixed-price contracts,"
said Dita Bronicki, chief executive officer of Ormat. "Signing this
46 MW contract will reduce our portfolio's exposure to California
SO#4 PPAs to 100 MW."
With an expected net generating capacity of 46 MW, Ormat will
sell the power to SCPPA at an average price of approximately $85.62
per megawatt hour over the lifetime of the contract. The new
pricing will increase Heber 1 revenues in 2016 by more than $7
million. SCPPA members that will receive power from Heber 1 are the
Los Angeles Department of Water and Power (LADWP) and the Imperial
Irrigation District (IID).
"In our effort to replace all coal generation by 2025, LADWP
sees the value in geothermal as an ideal coal replacer as a
renewable, baseload solution with no integration costs," explained
Aram Benyamin, senior assistant general manager – power at
LADWP. "As we continue to incorporate more renewable assets
into our portfolio, we will benefit from contracts like the Heber 1
PPA because it's a risk-free project with a credible owner-operator
at an attractive price."
For IID, "The district is able to continue integrating renewable
energy into its portfolio while at the same time supporting
sustainability in the Imperial Valley by integrating our indigenous
resources and the valuable jobs that are sustained by them into the
mix," said Carl Stills, energy department manager. "We are
thrilled to have contracted our first long-term geothermal project
enabling the supply of electricity from a local resource."
In addition to the new PPA, Ormat is in the midst of enhancing
the Heber 1 geothermal power plant. In 2014, the company plans to
refurbish the main steam turbine and replace the existing main
generator.
"This new PPA marks our second contract with LADWP as well as
IID. We are delighted to strengthen our relationship with these two
large publicly owned utilities and to help them meet their RPS
goals with clean, reliable and cost-effective geothermal
resources," Bronicki concluded.
About Ormat Technologies, Inc.
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
has over 500 employees in the United States and about 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 supplied to utilities and developers
worldwide, totaling approximately 1600 MW of gross capacity.
Ormat's current generating portfolio of 595 MW (net) is spread
globally in the U.S., Guatemala and Kenya.
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.
CONTACT: Ormat Technologies Contact:
Dita Bronicki
CEO
775-356-9029
dbronicki@ormat.com
Investor Relations Contact:
Todd Fromer/Rob Fink
KCSA Strategic Communications
212-896-1215 (Fromer)/212-896-1206 (Fink)
tfromer@kcsa.com / rfink@kcsa.com
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