SAN FRANCISCO --
JPMorgan Chase & Co. paid about $35.7 million for an interest in
eight Ormat Technologies Inc. geothermal power plants in California and
Nevada.
JPMorgan plans to pay Ormat an additional $8.7 million for 25
percent of the value of production tax credits generated by the plants
through the end of 2016, the Reno, Nevada-based developer said today in a
statement.
The so-called tax equity investment gives JPMorgan
production tax credits and accelerated depreciation benefits that Ormat
isn’t able to use, because “we generate more deductions for tax purposes
than we are currently able to utilize,” Ormat Chief Executive Officer
Dita Bronicki said in the statement. The production tax credit for
geothermal is 2.2 cents a kilowatt-hour and applies to the first 10
years of a plant’s operation.
The eight plants are part of Ormat’s Ormesa, Heber and
Mammoth complexes in California and its Steamboat and Brady complexes
in Nevada, Bronicki said today in an e-mail.
JPMorgan invested $24.9 million in four of Ormat’s Nevada facilities in a similar transaction in February 2011.
Copyright 2013 Bloomberg
http://www.renewableenergyworld.com/rea/news/article/2013/01/jpmorgan-buys-stake-in-eight-geothermal-power-plants-from-ormat
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