Ormat to Replace Up to 21.5 MW of Contracts Tied to Natural Gas Prices from
the Mammoth Complex with New Long-Term Power Purchase Agreements
The improved energy rates under the new PPAs, are secured until 2033 and will
significantly improve the Mammoth complex profitability
RENO, Nev., March 20, 2013
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
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
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 toOrmat'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 inOrmat
Technologies, Inc.'s Annual Report on Form 10-K filed with theSecurities and
Exchange CommissiononMarch 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
Dita Bronicki Todd Fromer/Rob Fink
CEO KCSA Strategic Communications
firstname.lastname@example.org email@example.com /
SOURCE Ormat Technologies, Inc.
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