USA, California:

Ormat Reduces Exposure to Natural Gas Prices With New 10-Year PPA for Heber 1 (NASDAQ - Press Release)

Ormat Technologies, Inc. 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).

GRC Company member Ormat Technologies will be at booth #301 at the GEA Expo run in conjunction with the GRC Annual Meeting, Sept. 29-Oct. 2 at the MGM Grand, Las Vegas, Nevada.

The 

Ormat Heber Geothermal Complex will be one of the destinations on a GRC Field Trip from 

Wednesday, October 2 – Saturday, October 5 to the 

Imperial Valley, California, departing from the 

GRC Annual Meeting.

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