$98/MWh PPA
Western GeoPower scored a nice deal yesterday inking a 20 year PPA with the Northern California Power Association for around $26M/year and a purchase price of $98/MWh. We thought the $78/MWh + wheeling costs that was cut earlier this year between the City of Anaheim and Raser was lucrative. $98/MWh is great and reflects the new CPUC pricing model.
With the deal, WGP has a $500M+ revenue stream set against a ~$120M capital expenditure. With operating costs of $30/MWh, that leaves a whopping $68/MWh for debt service, other SG&A, taxes, and net income.
Links:
Western GeoPower
Raser Technologies
Northern California Power Association (NCPA)
California Public Utilities Commission (CPUC)
