Fitch Ratings has affirmed OrCal Geothermal LLC's (OrCal) $165 million senior notes ($63 million outstanding) due in 2020 at 'BB'. The Rating Outlook is revised to Stable from Negative as a new Power Purchase Agreement (PPA) stabilizes long-term revenue.
OrCal signed a new PPA with Southern California Public Power Authority (SCPPA). As a result, all of OrCal's capacity is now under contract through debt maturity, significantly reducing revenue risk. Nevertheless, there remains some price volatility, as one-third of total capacity is exposed to Short Run Avoided Cost (SRAC) energy prices (tied to natural gas pricing) through debt maturity.
OrCal signed a new PPA with Southern California Public Power Authority (SCPPA). As a result, all of OrCal's capacity is now under contract through debt maturity, significantly reducing revenue risk. Nevertheless, there remains some price volatility, as one-third of total capacity is exposed to Short Run Avoided Cost (SRAC) energy prices (tied to natural gas pricing) through debt maturity.
OrCal Geothermal Inc., a wholly owned subsidiary of Ormat Technologies, Inc., operates the Heber 1 and 2 geothermal power plants in the Imperial Valley,