Ormat to Replace Up to 21.5 MWe of Contracts Tied to Natural Gas Prices from the Mammoth Complex with New Long-Term PPAs (Sacramento Bee - News Release)
The improved energy rates under the new PPAs, are secured until 2033 and will significantly improve the Mammoth complex profitability
Ormat Technologies, Inc. announced today that in April 2013 it will begin selling up to 14 MWe 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 MWe of geothermal power from the G1 plant in the Mammoth complex are expected to start by the end of 2013.
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.
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