Acquisitions (Tables)

3 Months Ended

Mar. 31, 2016

Business Combinations [Abstract]

Schedule of Business Acquisitions

During 2016, in accordance with its overall growth strategy, Southern Power acquired or contracted to acquire through its wholly-owned subsidiaries, Southern Renewable Partnerships, LLC or Southern Renewable Energy, Inc., the projects set forth in the following table. Acquisition-related costs were expensed as incurred and were not material. The acquisitions do not include any contingent consideration unless specifically noted.

Project Facility	Seller; Acquisition Date	Approx. Nameplate Capacity	Location	Southern Power Percentage Ownership		Expected/Actual COD	PPA Counterparties for Plant Output	PPA Contract Period	Approx. Purchase Price
		(MW)							(in millions)
SOLAR
Calipatria	Solar Frontier Americas Holding, LLC February 11, 2016	20	Imperial County, CA	90	%	February 11, 2016	San Diego Gas & Electric Company	20 years	$	51	(a)
East Pecos	First Solar, Inc. March 4, 2016	120	Pecos County, TX	100	%	Fourth quarter 2016	Austin Energy	15 years	$	41	(b)
WIND
Grant Wind	Apex Clean Energy Holdings, LLC April 7, 2016	151	Grant County, OK	100	%	April 8, 2016	Western Farmers, East Texas, and Northeast Texas Electric Cooperative	20 years	$	258	(c)
Passadumkeag	Quantam Wind Acquisition I, LLC	40	Penobscot County, ME	100	%	Second quarter 2016	Western Massachusetts Electric Company	15 years	$	127	(d)

(a) Calipatria - The total purchase price, including the minority owner, TRE's 10% ownership interest and contingent consideration of $6 million, is approximately $57 million. As of March 31, 2016, the fair values of the assets and liabilities acquired through the business combination were recorded as follows: $58 million as property, plant, and equipment, $1 million as a transmission interconnection prepaid, and $2 million as payables; however, the allocation of the purchase price to individual assets has not been finalized.

(b) East Pecos - The total purchase price is approximately $41 million. As of March 31, 2016, the fair values of the assets acquired through the business combination were recorded as $41 million to CWIP; however, the allocation of the purchase price to individual assets has not been finalized. Total construction costs, which include the acquisition price allocated to CWIP, are expected to be approximately $200 million to $220 million. The ultimate outcome of this matter cannot be determined at this time.

(c) Grant Wind - Subsequent to March 31, 2016, Southern Power acquired all of the outstanding membership interests of Grant Wind, LLC. The purchase price includes approximately $23 million of contingent consideration which may be adjusted based on performance testing and production over the first 10 years of operation.

(d) Passadumkeag - On March 11, 2016, Southern Power entered into an agreement to acquire all of the outstanding membership interests of Quantum Wind Acquisition I, LLC, which is expected to close in the second quarter 2016. The ultimate outcome of this matter cannot be determined at this time.

Schedule of Construction Projects

Through March 31, 2016, total costs of construction incurred for the projects below were $2.2 billion, of which $1.5 billion remains in CWIP. The ultimate outcome of these matters cannot be determined at this time.

Solar Facility	Seller	Approx. Nameplate Capacity	Location	Expected/Actual COD	PPA Counterparties for Plant Output	PPA Contract Period	Estimated Construction Costs
		(MW)					(in millions)
Butler	CERSM, LLC and Community Energy, Inc.	103	Taylor County, GA	Fourth quarter 2016	Georgia Power(a)	30 years	$	220	-	230	(b)
Desert Stateline	First Solar, Inc.	299(c)	San Bernardino County, CA	Through third quarter 2016	Southern California Edison Company (SCE)	20 years	$	1,200	-	1,300	(d)
Garland and Garland A	Recurrent Energy, LLC	205	Kern County, CA	Fourth quarter 2016   Third quarter 2016	SCE	15 years and 20 years	$	532	-	552	(e,f)
Roserock	Recurrent Energy, LLC	160	Pecos County, TX	Fourth quarter 2016	Austin Energy	20 years	$	333	-	353	(e,f)
Sandhills	N/A	146	Taylor County, GA	Fourth quarter 2016	Cobb, Flint, Irwin, Middle Georgia and Sawnee Electric Membership Corporations	25 years	$	260	-	280
Tranquillity	Recurrent Energy, LLC	205	Fresno County, CA	Third quarter 2016	Shell Energy North America (US), LP/SCE	18 years	$	473	-	493	(f,g)

(a) Butler - Affiliate PPA subject to FERC approval.

(b) Butler - Total estimated construction costs include the acquisition price of all outstanding membership interests of the related entity.

(c) Desert Stateline - The facility has a total of 299 MWs, of which 110 MWs were placed in service in the fourth quarter 2015 and 76 MWs were placed in service in the first quarter 2016. Subsequent to March 31, 2016, 38 MWs were placed in service. The remaining 75 MWs are expected to be placed in service by the end of the third quarter 2016.

(d) Desert Stateline - On March 29, 2016, Southern Power acquired an additional 15% interest in Desert Stateline. As a result, Southern Power and the class B member are entitled to 66% and 34%, respectively, of all cash distributions from Desert Stateline. In addition, Southern Power will continue to be entitled to substantially all of the federal tax benefits with respect to the transaction. Total estimated construction costs include the acquisition price allocated to CWIP; however, the allocation of the purchase price to individual assets has not been finalized.

(e) Total estimated construction costs include the acquisition price allocated to CWIP. During the first quarter 2016, the allocation of the purchase price to individual assets was finalized with no changes.

(f) Southern Power owns 100% of the class A membership interests and a wholly-owned subsidiary of the seller owns 100% of the class B membership interests. Southern Power and the class B member are entitled to 51% and 49%, respectively, of all cash distributions from the project.