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Acquisitions and Divestitures (Southern Power [Member])
12 Months Ended
Dec. 31, 2012
Southern Power [Member]
 
ACQUISITIONS AND DIVESTITURES
ACQUISITIONS AND DIVESTITURES
Granville Solar, LLC Acquisition
On October 16, 2012, the Company, through STR, acquired all of the outstanding membership interests of Granville Solar, LLC (Granville) from Sun Edison, LLC, the original developer of the project. Granville constructed and owns a 2.5 megawatt (MW) solar photovoltaic facility in Oxford, North Carolina. The solar facility began commercial operation on October 28, 2012. The output of the plant is contracted under a 20-year PPA with Progress Energy Carolinas that began in October 2012. This PPA is being accounted for as an operating lease. The acquisition is in accordance with the Company's overall growth strategy.
The Company's acquisition of Granville included cash consideration of $10.4 million. As of December 31, 2012, the allocation of the purchase price to individual assets has not been finalized. As of the acquisition date, the entire purchase price was recorded as CWIP and moved to plant in service on the balance sheets herein, once it was placed in service. Revenues and earnings with respect to Granville for the period ended December 31, 2012 were immaterial.
Spectrum Nevada Solar, LLC Acquisition
On September 28, 2012, the Company, through STR, acquired all of the outstanding membership interests of Spectrum Nevada Solar, LLC (Spectrum) from Sun Edison, LLC, the original developer of the project. Spectrum is constructing a 30-MW solar photovoltaic facility in North Las Vegas, Nevada. The solar facility is expected to begin commercial operation in mid-2013. The output of the plant is contracted under a 25-year PPA with Nevada Power Company, a subsidiary of NV Energy, Inc., that will begin in 2013. This PPA will be accounted for as an operating lease. The acquisition is in accordance with the Company's overall growth strategy.
The Company's acquisition of Spectrum consisted of cash consideration of $17.6 million paid at closing. An estimated $99.9 million will be paid to complete the construction of the solar facility. As of December 31, 2012, the allocation of the purchase price to individual assets has not been finalized. As of December 31, 2012, the $17.6 million purchase price was reflected in CWIP on the balance sheets herein.
Apex Nevada Solar, LLC Acquisition
On June 29, 2012, the Company, through STR, acquired all of the outstanding membership interests of Apex Nevada Solar, LLC (Apex) from Sun Edison, LLC, the original developer of the project. Apex constructed and owns a 20-MW solar photovoltaic facility in North Las Vegas, Nevada. The solar facility began commercial operation on July 21, 2012. The output of the plant is contracted under a 25-year PPA with Nevada Power Company, a subsidiary of NV Energy, Inc., that began in July 2012. This PPA is being accounted for as an operating lease. The acquisition is in accordance with the Company's overall growth strategy.
The Company's acquisition of Apex included consideration of $102.0 million. As of December 31, 2012, the allocation of the purchase price to individual assets has not been finalized. As of the acquisition date, the entire purchase price was recorded as CWIP and moved to plant in service on the balance sheets herein, once it was placed in service. Revenues and earnings with respect to Apex for the period ended December 31, 2012 were immaterial.
Southern Renewable Energy, Inc. Acquisition
In March 2011, Southern Company transferred ownership in its wholly-owned subsidiary, SRE, to the Company. The Company's acquisition of SRE was a transfer of net assets among entities under common control; therefore, the assets and liabilities of SRE were transferred from Southern Company to the Company at historical cost. The consolidated financial statements of the Company have been revised to include the financial condition and the results of operations of SRE since its inception in 2010. The effect of this revision was an increase of $1.3 million in net income for the year ended December 31, 2010. There was no impact on AOCI related to this change.
In 2010, the Company, through STR, entered into an engineering, construction, and procurement agreement with First Solar, Inc. for Plant Cimarron, a 30-MW solar photovoltaic plant near Cimarron, New Mexico, and assumed the associated PPA. In 2010, Plant Cimarron began commercial operation. The output from the plant is contracted under a PPA with Tri-State Generation and Transmission Association, Inc. (Tri-State). The Tri-State agreement began in December 2010 and expires in 2035. This PPA is accounted for as an operating lease.
The Company's acquisition of Cimarron included cash consideration of approximately $100 million and was allocated to property, plant, and equipment. The acquisition is in accordance with the Company's overall growth strategy. There are no contingent consideration arrangements and no significant liabilities arising from contingencies as a result of this acquisition. No goodwill or other intangible assets were recorded as a result of this acquisition.