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Politics : The Exxon Free Environmental Thread -- Ignore unavailable to you. Want to Upgrade?

To: Wharf Rat who wrote (4123)	8/18/2009 3:33:58 PM
From: Sam	Respond to of 49004

UPDATE:First Solar, SoCal Edison To Build 550MW In Solar Plants 08/18 11:45 AM (Adds details on the agreement, share price, analyst comment and background beginning in the third paragraph.) By Jerry A. DiColo Of DOW JONES NEWSWIRES NEW YORK (Dow Jones)--First Solar Inc. (FSLR:$133.48,00$-0.95,00-0.71%) and Southern California Edison ( SCE) signed a contract to build two large solar power projects in Southern California with a combined 550 megawatts of capacity, in one of the largest solar photovoltaic power deals in the United States. The companies said the plants - to be built in Riverside and San Bernardino counties - will provide enough power for 170,000 homes. Construction on the plant in Desert Center, Calif., is scheduled to start in 2012 and on the plant in northwest San Bernardino County in 2013. The contracts could be worth between $1.2 billion and $1.8 billion for First Solar (FSLR:$133.48,00$-0.95,00-0.71%) , according to Raymond James analyst Pavel Molchanov, taking into account that prices for solar panels are expected to continue to decline. First Solar (FSLR:$133.48,00$-0.95,00-0.71%) , which makes thin-film solar panels that are cheaper but less efficient than their silicon-based cousins, declined to provide details on the size of the deal or panel prices. First Solar's (FSLR:$133.48,00$-0.95,00-0.71%) shares were recently up $1.67, or 1.2%, to $136.10. The stock has fallen from highs above $200 in May as increasing panel supplies have led to falling prices across the industry, shaking investor confidence in the solar sector. The combined deal matches First Solar's (FSLR:$133.48,00$-0.95,00-0.71%) record contract to provide Pacific Gas & Electric Co. (PCG) with 550 megawatts of solar power at a site in San Luis Obispo County, Calif.First Solar (FSLR:$133.48,00$-0.95,00-0.71%) acquired the contract when it purchased the solar-project pipeline of smaller rival OptiSolar in March. Southern California Edison, like other California utilities, is required by state law to use renewable sources for a fifth of the power its sells by 2010, with pending legislation targeting 33% renewable power by 2020. Power companies are scrambling to secure the contracts to meet these clean- energy requirements, but regulatory hang-ups and transmission limitations can delay completion and raise the costs of the projects. A Southern California Edison spokeswoman said the utility has enough contracts in place to technically meet the 20% goal, but a lack of transmission capacity will prevent that power from actually flowing by that time. Spokeswoman Vanessa McGrady said a decision on the solar projects from the California Public Utilities Commission is expected within six months, though she declined to comment on the prospects for approval. As of 2008, Southern California Edison served 15.5% of its retail electricity sales with renewable power, according to the California Public Utilities Commission Web site. Meanwhile, renewable energy companies are waiting for several billion dollars in investment tax credit grants and loan guarantees to come from the U.S. government. First Solar (FSLR:$133.48,00$-0.95,00-0.71%) Executive Vice President John Carrington said the project would help California reach its renewable-energy goals. "Supplying solar power to Southern California Edison and its customers advances our mission of providing clean, affordable and sustainable solar electricity," he said. -By Jerry A. DiColo, Dow Jones Newswires; 212-416-2155; jerry.dicolo@ dowjones.com