Question-and-Answer Session
Operator
(Operator Instructions) Your first question is from the line of Ben Kallo with Robert W. Baird.
Ben Kallo - Robert W. Baird
Hi, good morning. I had a couple questions on Brawley specifically. You mentioned ITC was going to cover more of the project than originally you had anticipated, what was the total cost for that project, can you give us that number?
Dita Bronicki
It’s in the order of $300 million.
Ben Kallo - Robert W. Baird
Okay great, and then when you’re filing the application for that cash grant, does it matter what level the power plant is producing at or is it just on nameplate capacity?
Dita Bronicki
The application for the grant can be applied once the project is placed in service, and placed in service means generation of a certain level of electricity and readiness of the project for operation. So you cannot file an application before you’ve completed construction and you are ready for operation, but the calculation of the grant is based on cost and not on performance.
Ben Kallo - Robert W. Baird
Okay great, but you mentioned also you’re working on financing for that power plant and you said that you’d have something in the next couple of weeks, but that assumes that would happen before commercial operation?
Dita Bronicki
The commitment, the documentation, can certainly happen before.
Ben Kallo - Robert W. Baird
Is that something that you could release to the public? When that occurs, you’ll put out a press release on that?
Dita Bronicki
When we sign the commitment?
Ben Kallo - Robert W. Baird
Yes.
Dita Bronicki
We typically don’t do it when we sign commitments, but we will consider it in this case.
Ben Kallo - Robert W. Baird
Okay, could you also comment on what the market looks like for new PPAs considering a drop in electricity prices; how much that’s affecting the demand for green power?
Dita Bronicki
I can share with you my personal view; I’m not sure it’s correct or not correct, but our view. Even though we are reading about a decline in electricity demand especially in California, also in Nevada, we see some decline in the increase in the demand.
We don’t expect it to impact green power, because all the utilities that I’m aware of are far away from reaching their RPS target and especially the California utilities have signed hundreds of megawatts that I think they know will not come online when expected, and I’m talking especially about the solar thermal projects. So their appetite for green power has not changed despite a decline in electricity demand.
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