Summary
Exelon Corporation, through its wholly owned subsidiary Exelon Generation Company, LLC, announced on September 28, 2011, its entry into a material definitive agreement to purchase the Antelope Valley Solar Ranch One project. This is a 230-megawatt (MW) solar photovoltaic (PV) project located in northern Los Angeles County, California. First Solar, the developer, will also be responsible for the construction and operation of the project. This strategic acquisition signals Exelon's expansion into renewable energy generation, a key area for future growth in the utility sector. The project, which has commenced construction, is slated for partial operation by late 2012 and full operation by late 2013. Exelon anticipates an investment of up to $1.36 billion, with up to $713 million expected to be invested through 2013. The project's financing is partially supported by a U.S. Department of Energy loan guarantee of up to $646 million. Notably, the project has secured a 25-year power purchase agreement (PPA) with Pacific Gas & Electric for its entire output, which is expected to provide stable earnings and cash flows. Exelon expects this acquisition to be accretive to both earnings and free cash flow starting in 2013.
Key Highlights
- 1Exelon Generation Company, LLC entered into a Purchase Agreement to acquire the Antelope Valley Solar Ranch One project.
- 2The acquired project is a 230 MW solar photovoltaic (PV) facility in Los Angeles County, California.
- 3First Solar will develop, build, and operate the project.
- 4The total investment is expected to be up to $1.36 billion, with up to $713 million invested by Exelon through 2013.
- 5A U.S. Department of Energy loan guarantee of up to $646 million supports project financing.
- 6The project has a 25-year PPA with Pacific Gas & Electric for its full power output.
- 7The acquisition is expected to be accretive to Exelon's earnings and free cash flow beginning in 2013.