Ormat Technologies Signs 25-year Power Purchase Agreement for the Ormesa Geothermal Complex in California (News Release)
New PPA to Further Reduce Exposure to Natural Gas and Improve Margins
Ormat Technologies, Inc. today announced that its subsidiary entered into a 25-year Power Purchase Agreement (PPA) with Southern California Public Power Authority (SCPPA) to deliver electricity from its Ormesa geothermal complex in Imperial Valley, California beginning November 30, 2017.
The SCPPA PPA will supersede Ormesa’s current 30-year Standard Offer Contract No. 4 (SO#4) with Southern California Edison that has a variable energy rate tied primarily to volatile natural gas prices and that will expire on November 29, 2017. Under the terms of the PPA, energy from the Ormesa complex will be sold to SCPPA at a rate of $77.25 per megawatt hour with no annual escalation. Contract capacity is 35 MW, with a maximum generation equivalent to a net capacity of about 43 MW. SCPPA will resell about 86% of this power complex’s output to the Los Angeles Department of Water and Power (LADWP) and the remaining 14% to the Imperial Irrigation District (IID).