Ormat announces a non-cash pre-tax charge for impairment to its North Brawley Geothermal power plant
Reno, USA - Ormat Technologies, Inc. announced that it will record a non-cash pre-tax charge of up to 230 million US-Dollar during the fourth quarter of 2012 for impairment to the company
In order to improve the economics of the North Brawley power plant, the company approached SCE to discuss various contractual alternatives to the power purchase agreement and, in early 2012, reached a written understanding to engage in discussions with third parties about purchasing the power at better rates. However, in a letter dated January 14, 2013, SCE informed the company that it is no longer interested in pursuing alternatives to the current power purchase agreement, thus retracting its permission to the company to explore a replacement power purchase agreement with higher electricity prices.
As a result of SCE
Source: IWR Online, 23 Jan 2013