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Acquisitions (Southern Power [Member])
12 Months Ended
Dec. 31, 2013
Southern Power [Member]
 
ACQUISITIONS
ACQUISITIONS
Adobe Solar, LLC
On August 27, 2013, the Company and TRE, through STR, entered into a purchase agreement with Sun Edison, LLC, the developer of the project, which provides for the acquisition of all of the outstanding membership interests of Adobe Solar, LLC (Adobe) by STR. Adobe is constructing an approximately 20-megawatt (MW) solar generating facility in Kern County, California. The solar facility is expected to begin commercial operation in spring 2014. The output of the plant is contracted under a 20-year PPA with Southern California Edison Company, which is expected to begin in spring 2014. The acquisition is in accordance with the Company's overall growth strategy.
The Company's acquisition of Adobe is expected to occur in spring 2014 and the purchase price is expected to be approximately $100 million.
The completion of the acquisition is subject to Sun Edison, LLC achieving certain construction and project milestones by certain dates and various customary conditions to closing. The ultimate outcome of this matter cannot be determined at this time.
Campo Verde Solar, LLC
On April 23, 2013, the Company and TRE, through STR, acquired all of the outstanding membership interests of Campo Verde Solar, LLC (Campo Verde) from First Solar, Inc., the developer of the project. Campo Verde constructed and owns an approximately 139-MW solar photovoltaic facility in Southern California. The solar facility began commercial operation on October 25, 2013. The output of the plant is contracted under a 20-year PPA with San Diego Gas & Electric Company, a subsidiary of Sempra Energy, which began on the commercial operation date. The asset acquisition was in accordance with the Company's overall growth strategy.
The Company's acquisition of Campo Verde included cash consideration of $136.6 million, of which $132.2 million has been paid and $4.4 million remains to be paid upon completion of certain milestones. The purchase price was allocated primarily to CWIP and $1.0 million to other assets. As of December 31, 2013, the allocation of the purchase price to individual assets has not been finalized. The acquisition did not include any contingent consideration and due diligence costs were expensed as incurred and were not material. Under an engineering, procurement, and construction agreement, an additional $355.5 million was paid to a subsidiary of First Solar, Inc. for construction of the solar facility.
Spectrum Nevada Solar, LLC
On September 28, 2012, the Company and TRE, 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 constructed and owns an approximately 30-MW solar photovoltaic facility in North Las Vegas, Nevada. The solar facility began commercial operation on September 23, 2013. The output of the plant is contracted under a 25-year PPA with Nevada Power Company, a subsidiary of NV Energy, Inc., which began on the commercial operation date. The asset acquisition was 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 which was allocated to CWIP and did not include any contingent consideration. Due diligence costs were expensed as incurred and were not material. Under an engineering, procurement, and construction agreement, an additional $104.0 million was paid in 2013 to a subsidiary of Sun Edison, LLC to complete the construction of the solar facility.
Apex Nevada Solar, LLC
On June 29, 2012, the Company and TRE, 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 an approximately 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. The business acquisition was in accordance with the Company's overall growth strategy.
The Company's acquisition of Apex included cash consideration of $102.0 million, of which $96.0 million was paid in 2012 and $6.0 million will be paid upon completion of certain milestones. The purchase price was allocated to CWIP. The acquisition did not include any contingent consideration. Due diligence costs were expensed as incurred and were not material.