Although the North Brawley power plant came on line with a power purchase agreement with Southern California Edison (SCE) in 2010, the geothermal field has been much more difficult to operate than other fields and the power plant has been unable to reach its design capacity of 50 megawatts, producing only 20-33 megawatts. Furthermore, achieving this level required significant additional capital expenditures and higher than anticipated operating costs. Last week, SCE rejected Ormat Technologies' request to revise the power purchase agreement at higher rates.
Ormat therefore concluded that it is not worthwhile investing further to increase the generating capacity of the North Brawley plant, and will operate it at the current capacity level.
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