Acquisitions

6 Months Ended

Jun. 30, 2012

Business Combinations [Abstract]

ACQUISITIONS

(I) ACQUISITIONS

Apex Nevada Solar, LLC Acquisition

On June 29, 2012, Southern Power and Turner Renewable Energy, Inc., through a jointly-owned subsidiary owned 90% by Southern Power, 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. Commercial operation of the solar facility was declared by Apex on July 21, 2012. The output of the plant is contracted under a PPA with Nevada Power Company, a subsidiary of NV Energy, Inc., that began in 2012 and expires in 2037. This PPA will be accounted for as an operating lease. The acquisition is in accordance with Southern Power’s overall growth strategy.

Southern Power’s acquisition of Apex included cash consideration of $102 million, of which $86.5 million was paid at closing. The remaining $15.5 million will be paid upon achievement of certain milestones. Due to the proximity of the closing date to June 30, 2012, there has not been sufficient time to complete the final allocation of the purchase price to individual assets. As of June 30, 2012, the entire purchase price is reflected in CWIP on Southern Power’s Condensed Balance Sheet herein.