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Acquisitions
9 Months Ended
Sep. 30, 2012
Business Combinations [Abstract]  
ACQUISITIONS
ACQUISITIONS
Apex Nevada Solar, LLC Acquisition
On June 29, 2012, Southern Power and Turner Renewable Energy, Inc. (TRE), 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. 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 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 and an additional $9.5 million was paid on September 28, 2012 upon completion of a project milestone. The remaining $6 million is expected to be paid in November 2012 upon achievement of the final milestone. As of September 30, 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. Revenues and earnings with respect to Apex for the period ended September 30, 2012 were immaterial.
Spectrum Nevada Solar, LLC Acquisition
On September 28, 2012, Southern Power and TRE, through a jointly-owned subsidiary owned 90% by Southern Power, 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 April 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 Southern Power's overall growth strategy.
Southern Power's acquisition of Spectrum consisted of cash consideration of $17.6 million paid at closing. An additional $99.9 million will be paid to a subsidiary of Sun Edison, LLC to complete the construction of the solar facility. Due to the proximity of the closing date to September 30, 2012, there has not been sufficient time to complete the final allocation of the purchase price to individual assets. As of September 30, 2012, the $17.6 million purchase price was reflected in CWIP on Southern Power's Condensed Balance Sheet herein.
Granville Solar, LLC Acquisition
On October 16, 2012, Southern Power and TRE, through a jointly-owned subsidiary owned 90% by Southern Power, 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-MW solar photovoltaic facility in Oxford, North Carolina. Commercial operation of the solar facility was declared by Granville 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 Southern Power's overall growth strategy.
Southern Power's acquisition of Granville included cash consideration of $10.4 million, of which $7.8 million was paid at closing. The remaining $2.6 million will be paid upon achievement of certain milestones.