On July 31, 2014, CoBank ACB disclosed that it would not renew or extend the outstanding Coso letters of credit. These letters of credit consist of a power purchase agreement letter of credit, which is being replaced by the Citibank, N.A. letter of credit described above, and a debt service reserve letter of credit, which is not being replaced. Under the terms of that debt service reserve letter of credit, the remaining amount available (approximately $27.6MM) can be drawn at any time during the 15-day period prior to its expiration on December 1, 2014. The company expects that the final drawing of the entire amount remaining available will be made in mid-November 2014 with the proceeds deposited in a debt service reserve account.
Coso Geothermal Power Holdings, LLC leases and operates three interlinked geothermal power plants located in Inyo County, CA, with installed nameplate capacity of 302 megawatts.
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