The Company recognized a net loss of $16 million for the nine months ended September 30, 2014 compared to a net loss of $45.9 million for the same period in 2013, which resulted in a decreased loss of $29.9 million due to various factors, including $21 million decrease related to impairment losses on the Geysers project and $5.8 million decrease related to unrealized other gains and losses from foreign exchange and valuation of the Company’s derivatives.
On November 10, 2014, the Power Purchase Agreement between Ram Power and Disnorte-Dissur for the San Jacinto project, was amended to modify a penalty formula by: (i) reducing the capacity factor from 90% to 70%; (ii) changing from a binomic charge to a mononic charge; and (iii) defining parasitic consumption as undelivered energy not attributable to the seller. As a result, as long as the amount of electricity generated by the plant at its San Jacinto project is above 45 MW (net)/day, the Company will not be in violation of the covenants in its exploitation agreement relating to production. However, this change does not affect the minimum electricity production required under the Company’s credit agreements, which minimum is an average of 55 MW (net)/day.
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