Ormat Signs 20-Year Power Purchase Agreement for its Wild Rose Geothermal
Project in Nevada
RENO, Nev., April 29, 2013
RENO, Nev., April 29, 2013 /PRNewswire/ -- Ormat Technologies, Inc.'s (NYSE:
ORA) wholly owned subsidiary entered into a 20-year Power Purchase Agreement
(PPA) with Southern California Public Power Authority (SCPPA) to deliver
electricity from its Wild Rose geothermal power plant in Mineral County,
Nevada. When Wild Rose comes online at the end of 2013, it will mark the first
time renewable energy will be delivered from Nevada to California using NV
Energy's One Nevada Transmission Line.
With an estimated average generation capacity of 16 MW (net), this project
together with the other two projects currently under construction – one in the
Imperial Valley, California and another in Kenya – are expected to bring the
company's total generating capacity to approximately 637 MW by the end of
2013. Ormat will sell the power to SCPPA at $99 per megawatt hour with no
annual escalation. SCPPA will resell the power to the Los Angeles Department
of Water and Power (LADWP) and Burbank Water and Power (BWP). Electricity
from Wild Rose geothermal power plant will be transmitted to LADWP and BWP
through NV Energy's transmission system. NV Energy's system includes the new
500 kV One Nevada Transmission Line that will connect service areas in both
northern and southern Nevada. The line is expected to be operational by the
end of this year.
"Securing this PPA for Wild Rose is instrumental in diversifying our growing
customer base and improving the profitability of our U.S. fleet," said Yoram
Bronicki, president and chief operating officer for Ormat. "We look forward to
working with LADWP, the nation's largest municipal utility, and BWP to provide
the residents of California access to a clean and reliable energy source."
"Given the location of the Wild Rose geothermal plant and the way it will
interconnect with the transmission system, the power could ultimately serve as
a replacement for coal power LADWP receives from the Intermountain Power Plant
in Utah," explained Aram Benyamin, senior assistant general manager – power at
LADWP. "So when you think about strategy, this could really open up the
northern Nevada geothermal area and help us achieve our goal to stop using
coal by 2025 and allow better integration of renewable resources in our
In addition to providing energy and needed capacity to more than 22,000
California homes, the Wild Rose geothermal power plant will continue to
provide economic development to Mineral County, Nevada through employment
benefits, taxes and community contributions.
"This geothermal energy project is a result of a joint effort between Nevada
and California to find mutually beneficial energy trades," said Nevada
Governor Brian Sandoval. "The project provides quality jobs for Nevadans and
affordable renewable energy to Californians, which is a win for everyone."
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'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: Investor Relations Contact:
Dita Bronicki Todd Fromer/Rob Fink
CEO KCSA Strategic Communications
775-356-9029 212-896-1215 (Fromer)/212-896-1206 (Fink)
email@example.com firstname.lastname@example.org / email@example.com
SOURCE Ormat Technologies, Inc.
Press spacebar to pause and continue. Press esc to stop.