Business Context and Reporting Period
This Form 8-K Current Report was filed by Ormat Technologies, Inc. on May 16, 2006. The filing discloses the entry into material definitive agreements by three of the company's indirect wholly-owned subsidiaries: Ormesa LLC, Heber Geothermal Corp., and Second Imperial Geothermal Company.
Key Financial Metrics and Agreement Terms
The filing details "Agreements Addressing Renewable Energy Pricing Issues" with Southern California Edison Company (SCE). Key terms include:
- Fixed Energy Rate: The average energy rate is fixed at $62.74 per MWh.
- Duration: The rate is fixed for a five-year period.
- Effective Date: The agreements commence on May 1, 2007.
- Projects Covered: Ormesa, Heber 1, and Heber 2 geothermal projects.
The filing does not provide specific revenue, profit, cash flow, margin, debt, or liquidity figures for the reporting period.
Material Changes and Regulatory Status
The primary material change is the execution of pricing agreements that secure revenue streams for the specified geothermal projects. These agreements are subject to approval by the California Public Utilities Commission (CPUC). No prior comparable period data is provided in this specific filing to quantify changes in financial performance.
Outlook, Risks, and Contingencies
Management commentary is limited to the announcement of the agreements. The filing includes a Safe Harbor Statement regarding forward-looking statements, noting that actual results may differ due to risks and uncertainties. Specific risks are referenced in the company's Annual Report on Form 10-K (filed March 28, 2006) and the Prospectus Supplement (filed April 5, 2006). A key contingency is the requirement for CPUC approval before the agreements become effective.
Investor Verification Checklist
- Verify the status of the California Public Utilities Commission (CPUC) approval for the agreements.
- Confirm the specific capacity and output volumes of the Ormesa, Heber 1, and Heber 2 projects to estimate total revenue impact.
- Review the referenced Form 10-K and Prospectus Supplement for detailed risk factors.
- Monitor future filings for any amendments to the pricing terms or effective dates.