Geothermal Energy Association members in the news: Alstom, Calpine, Ormat, Ram Power

Geothermal Energy Association members in the news this week include Alstom, Calpine Corp., Ormat Technologies, and Ram Power.

Alstom: Agreement Signed for “Los Humeros III” in Mexico
Calpine Corp.: Deal Proposed with Sonoma Clean Power
Ormat Technologies: NV Energy to Increase Power Purchase from McGinness Hills
Ormat Technologies: CEO Yehudit (Dita) Bronicki to Retire
Ram Power: 2013 Third Quarter Results Announced

Alstom: Agreement Signed for “Los Humeros III” in Mexico
Alstom Press Release, November 12–Alstom signed a contract worth €30 million with the Mexican Federal Electricity Commission1 (CFE) to build the geothermal power plant “Los Humeros III – Phase A”, located in Chignautla, state of Puebla. This power plant will have an installed capacity of 25 MW and will produce an average of more than 200 GWh per year of renewable energy, equivalent to the annual energy used by 40,000 people in Mexico.

“Over the last decade, Alstom has participated in numerous geothermal power projects in Mexico, that all combined add up to nearly 200 MW of installed capacity. We are happy that Alstom’s technology will contribute to the diversification of non-fossil energy sources in the country, a goal that the current government has set to reach 35% by 2024.” said Cintia Angulo, Alstom Mexico Country President.

This Alstom turnkey project includes all of the engineering, as well as the power plant construction, set-up equipment, steam turbine, turbo generator, systems control and high voltage electric substation, and related equipment. The power plant is expected to start operations during the second quarter of 2016, and will operate using heat obtained by drilling steam extraction wells at a depth of up to 3,500 meters (11,500 ft.).

Mexico has the fourth biggest geothermal power reserves in the world, just behind the United States, the Philippines and Indonesia. “Los Humeros III Phase A” power plant will operate in tandem with 2 other geothermal power plants recently installed by Alstom in the same area (Los Humeros IIA, and Los Humeros IIB). Combined with the new power facility, those three projects will have an installed capacity of 75 MW, meeting the annual power needs of 120,000 local inhabitants.

During nearly five decades of Alstom’s presence in Mexico, the company has installed over 11,000 MW of power generation equipment in the country, which represents almost 20% of the country’s total power capacity.

Calpine Corp.: Deal Proposed with Sonoma Clean Power
Sonoma Clean Power, the County’s startup public power agency has a proposed 10-year deal on the table that represents a geothermal future involving Calpine Corp.’s The Geysers, the world’s largest geothermal energy field. Sonoma County Supervisor Shirlee Zane told press (PressDemocrat.com) the deal could signify expanded support for local geothermal resources. “The Geysers supplies about a quarter of California’s renewable energy, but less than 1 percent of that power is purchased by utilities for Sonoma County customers,” notes the article. Calpine is waiting to secure a buyer before moving forward on an approved $700 million expansion that would add two plants and an additional 100 MW to its geothermal operations at The Geysers, increasing the power output by 14%. www.geysers.com

Ormat Technologies: NV Energy to Increase Power Purchase from McGinness Hills
Ormat Press Release (RENO, Nev.) November 14–Ormat Technologies, Inc. (NYSE:ORA) announced today that a key milestone was reached in the 30-megawatt (MW) expansion of its McGinness Hills geothermal power plant complex located in Lander County, Nevada. NV Energy and Ormat signed an amendment to the existing McGinness Hills power purchase agreement (PPA) allowing Ormat to sell 63.7 MW (net average annual capacity) from the complex. Under the amendment, a new energy rate of $85.58/MWh with a 1 percent annual escalator will be set for the entire complex once Phase II enters commercial operation. The amendment is subject to approval by the Public Utilities Commission of Nevada.

“The favorable performance of the reservoir and the PPA amendment give Ormat the ability to further expand this geothermal site,” explained Yoram Bronicki, president and chief operating officer at Ormat. “Phase I of our McGinness Hills geothermal power plant has been in commercial operation since June 2012 and the strength of the reservoir allowed the power plant to consistently produce more energy than what was contracted in the original PPA. We are eager to continue development at the site which we hope to complete in mid-2015, as well as our work with NV Energy to deliver more clean, renewable power to Nevada.”

The McGinness Hills power plant received favorable project financing terms from the Department of Energy’s loan guarantee program under section 1705. The proposed expansion was approved by the lenders, John Hancock Life Insurance Company and the U.S. Department of Energy, and is covered under the existing financing structure. The economics of the expanded power plant and the potential availability of government incentives for projects that start construction before the end of 2013 enabled Ormat to provide a reduced power price to electricity customers in Nevada.

Ormat Technologies: CEO Yehudit (Dita) Bronicki to Retire
Reno, Nevada, November 5, 2013 — Ormat Technologies, Inc. (NYSE: ORA) today announced that Mrs. Yehudit (Dita) Bronicki, the company’s chief executive officer, has decided to retire from her position of CEO, effective June 30, 2014, the current expiration date under her employment contract, thus starting an orderly leadership transition over the next 8 months. Mrs. Bronicki will continue to serve as a director of the company following her planned retirement as CEO. Mrs. Bronicki’s decision to retire will bring to a close a remarkable career of 48 years of continuous management service to the Company and its shareholders.

The company further announced that Mr. Gillon Beck has decided to step down from his position of chairman of the board of directors of the company, also effective June 30, 2014 and that the board of directors has elected and appointed Mr. Yoram Bronicki as the succeeding chairman, with such appointment being effective June 30, 2014. Mr. Beck will continue to serve as a director of the company after he steps down from his position as chairman. Upon assuming the position of the chairman of the board Mr. Yoram Bronicki will relinquish his position as president and chief operating officer of the company.

The board of directors has established a search committee to assist the Board in conducting the process of choosing Mrs. Bronicki’s successor. “Mrs. Bronicki has been with the company for 48 years, and has served as its CEO for 23 of those years. During that time, Mrs. Bronicki took Ormat from a small products manufacturer for third parties to a multinational, independent power producer, with generation capacity of approximately 600 MW around the world and a market capitalization of over $1 billion,” said Mr. Gillon Beck, chairman of the board. “Mrs. Bronicki was the driving force and leader behind Ormat’s 2004 IPO, establishing the Company as a leading NYSE-listed renewable energy power producer. Ormat delivered over 1600MW of clean energy solutions to over 20 countries around the world. She is leaving a very strong, profitable and growing company thanks to her leadership over the years. The Board of Directors is grateful for Mrs. Bronicki’s tireless contribution to the Company and her distinguished tenure as CEO over the years.”

“I have been privileged to lead one of the world’s unique renewable energy companies,” Mrs. Bronicki said. “After more than two decades as CEO, it is time to move on and transfer the company’s helm to a new generation of leadership. I am proud of the strong and profitable company that we have created and would like to take this opportunity to thank Lucien Bronicki whose vision became the foundation of the company, and all the generations of Ormat employees who assisted us over the 48 years of building this vertically integrated renewable energy company. I look forward to working with the board of directors and the company’s management team during the transition period, and to continue my relationship and active role with the company after my retirement in my continued capacity as a board member.”

Ram Power: 2013 Third Quarter Results Announced
Ram Power Press Release (Reno NV) November 13–Ram Power, Corp. (TSX: RPG), a renewable energy company focused on the development, production and sale of electricity from geothermal energy, is pleased to announce its operating results for the third quarter ended September 30, 2013. This earnings release should be read in conjunction with Ram Power’s financial statements, and management’s discussion and analysis (“MD&A”), which are available on the Company’s website at http://www.ram-power.com and have been posted on SEDAR at http://www.sedar.com.

QUARTER HIGHLIGHTS
The achievement of commercial operation of the Phase II expansion at San Jacinto in December 2012 continued to generate strong year-over-year revenue growth for the Company of $11.2 million for the three months ended September 30, 2013, compared to $6.9 million for the same period in 2012, a 62% increase. EBITDA, as defined below, increased 214% to $6.9 million for the three months ended September 30, 2013 compared to $2.2 million for the three months ended September 30, 2012.

Significant accomplishments and key highlights during the quarter and to date include:

The Company generated approximately 103,840 MWh (net) for the quarter ended September 2013 which is a 34% increase over the comparable quarter for 2012. Year to date through September 2013, the Company generated 332,837 MWh (net) and billed $36 million which is a 49% increase in net generation and a 79% increase in revenue over 2012. Revenue increased at a higher rate than generation as a result of the tariff increase effective October 2012.

Remediation of Well SJ 6-1: The Company successfully replaced 367 meters of damaged liner and perforated a 60 meter section of liner which had demonstrated increased temperature and permeability. SJ 6-1 steamflow is currently estimated at 9.8 tonnes / hour or 1.3 MW (gross) and the well was connected to the plant on September 26, 2013.

Remediation of Well SJ 6-2: The Company successfully perforated 60 meters of blank liner to recover production at an upper major zone that may have been affected by prior mineral deposition to preserve the long-term physical condition and production of the well. After a brief recovery period, well SJ 6-2 was placed back in service and steam-flow is currently estimated at 58 tonnes / hour per hour or 8 MW (net).

Remediation of Well SJ 9-3: The Company successfully drilled a fork leg to a total depth of 1,900 meters during which the drilling operation experienced a total loss of circulation at 1,200 meters and 70 to 80% circulation losses for the remainder of the drilling which is a strong indication of high permeability. The well is scheduled to be placed back in service in late November; results to date are encouraging and further details will be disclosed as available.

Remediation of Well SJ 12-3: The Company has begun the remediation efforts on well SJ 12-3, and expects the efforts to conclude in early December, and following a recovery period, expects SJ 12-3 back in service in mid-December; results to date are encouraging and further details will be disclosed as available.

Overhead cost savings of $1.1 million and $1.7 million were realized for the three and nine months ended September 30, 2013, respectively, as a result of the 2013 corporate restructuring.

Antony Mitchell, Executive Chairman for Ram Power, stated, “Notwithstanding the interruptions in production that occurred due to the remediation program, San Jacinto continues to generate strong revenue and EBITDA for the quarter. We look forward to the successful completion of the remediation program in December, and the continued review and reductions of all general and administrative costs across the Company.”

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