Ormat Technologies Inc. received final approval for a 26-year power purchase agreement between its subsidiary ONGP LLC and the Southern California Public Power Authority.
Under the agreement, the power authority will purchase 150 MW generated by the company's geothermal power plants at a fixed price of $75.50 per MWh and resell it to the Los Angeles Department of Water and Power, according to a June 1 news release from Ormat.
The purchase agreement covers nine primary facilities including new projects under development such as Tungsten Mountain and Dixie Meadows, and existing geothermal facilities, including Steamboat Hills, Brady, Steamboat II and Steamboat III, that will begin deliveries to the power authority once their current contracts terminate. The geothermal facilities are located in Nevada, and the output of the Steamboat units is currently under contract to Berkshire Hathaway Energy unit NV Energy Inc.'s Sierra Pacific Power Co. utility, with varying expiration dates.
Additionally, the portfolio agreement further covers 16 secondary facilities, including McGinness Hills phase 3, that could be used to replace or supplement the primary facilities. The parties expect to implement the contracts in the coming weeks.
The agreement is expected to deliver energy in the last quarter this year, with the entire portfolio likely to be online by the end of 2022.