9.5.2005: Meldung: Ormat Technologies Completed Negotiation of Two New Power Purchase Agreements
Under both energy-only PPAs, 10 MW (each) will be delivered. The product will be sold at a fixed price of $57.50/MWh with an annual escalation of 1.5% and includes the value for the energy as well as the Environmental Attributes. In addition, 30% of the Production Tax Credits if and when available, will be shared with the power purchasers. Deliveries pursuant to the Ormesa PPA are expected to start in the fourth quarter of 2006 and deliveries pursuant to the Heber PPA are scheduled to begin by the end of 2005. Both PPAs are expected to be entered into in the coming weeks.
Ormat also announced that it celebrated the ground breaking and dedication of a new geothermal power plant within the Heber Geothermal Facilities Complex on Monday May 2, 2005. The new plant is dedicated to Mr. William R. Gould, who served as the Chairman of Southern California Edison (SCE) from 1980 through 1984, and was a driving force behind much of California"s renewable energy programs. The new 10 MW William R. Gould plant is part of an 18 MW enhancement at the Heber Geothermal Facilities Complex, including an 8 MW enhancement to existing facilities, which supply power to Southern California Edison under ongoing PPAs.
The new plant will supply 10 MW (net) of clean, affordable, and sustainable geothermal energy, under the abovementioned Heber PPA to the following member cities of SCPPA: Anaheim, Glendale, Pasadena, and Banning. The product carries Environmental Attributes, known as RECs which will assist the SCPPA member cities to comply with their respective Renewable Portfolio Standard (RPS) requirements.
Some 120 persons, including community leaders, SCPPA members, State of California officials, local landowners, and other geothermal industry stakeholders, were in attendance at the ground breaking and dedication. The special keynote speaker was Mr. Robert Foster, President of Southern California Edison. Mr. Foster said: "I like the sound of the geothermal power plant back there because we know that these plants produce reliable power 24x7. Unlike other forms of renewable energy, I know that this energy will always be there and we don"t need to have shadow generation to support geothermal power. Even though we like to have dispatchable power, we can forego dispatchability for the reliability of geothermal power."
Lucien Y. Bronicki, Chairman of the Board and Chief Technology Officer of Ormat, said: "We are proud to break ground today on Ormat"s first contribution to the recently enacted California RPS, which is part of our construction and enhancement program, which will add approximately 125 MW of generating capacity over the next two to three years. Our commitment to generate and deliver clean electricity without the consumption of fossil fuel represents a substantial growth opportunity for Ormat. This electricity is a result of Ormat"s technological expertise, and will be added to the existing Ormat facilities that have been supplying electricity to California for approximately 20 years." He continued, "In addition, we are proud to honor Mr. William R. Gould, who served the Southern California Edison Company with distinction, as president in 1978 and Chairman of the Board and CEO in 1980. As a result of his insightful and courageous leadership in the utilities industry, Southern California Edison is the only corporation to have received the prestigious John and Alice Tyler Prize for Protection of the Environment -- a sterling example for the rest of the industry."
About Ormat Technologies
Ormat Technologies, Inc. is a vertically integrated company primarily engaged in the geothermal and recovered energy power business. The company designs, develops, builds, owns and operates geothermal power plants. It also designs, develops and builds, and plans to own and operate, recovered energy-based power plants. Additionally, the company designs, manufactures and sells geothermal and recovered energy power units and other power generating equipment, and provides related services. Ormat products and systems are covered by more than 70 patents. Ormat currently has operations in the United States, Israel, the Philippines, Guatemala, Kenya, and Nicaragua.
Safe Harbor Statement
Information provided in this press release may contain statements relating to current expectations, estimates, forecasts and projections about future events that are "forward-looking statements" as defined in the Private Securities Litigation Reform Act of 1995. These forward-looking statements generally relate to Ormat"s plans, objectives and expectations for future operations and are based upon its management"s current estimates and projections of future results or trends. Actual future results may differ materially from those projected as a result of certain risks and uncertainties. For a discussion of such risks and uncertainties, see "Risk Factors" as described in Ormat"s 10-K/A filed with the Securities and Exchange Commission on April 12, 2005.
These forward-looking statements are made only as of the date hereof, and we undertake no obligation to update or revise the forward-looking statements, whether as a result of new information, future events or otherwise.
Ormat Technologies Contact: Investor Relations Contact
Dita Bronicki Jeff Corbin/Lee Roth
CEO and President KCSA Worldwide
Source: Ormat Technologies Inc.