MidAmerican Energy Holdings Co., a unit of billionaire Warren Buffett's Berkshire Hathaway Inc., said Wednesday, Jan. 2, it bought the 579-megawatt Antelope Valley Solar projects in California from solar power plant developer SunPower Corp. for an undisclosed sum.
San Jose, Calif.-based SunPower expects the deal to be worth $2 billion to $2.5 billion including engineering, procurement and construction contracts, SunPower said in a securities filing, without giving a breakdown.
The projects in Kern and Los Angeles Counties, which have been in development for four years, will form the largest permitted solar photovoltaic power development in the world, supplying renewable energy to Southern California Edison under long-term contracts. Construction will begin in the first quarter with completion expected by the end of 2015. Bill Fehrman, president of MidAmerican Renewables, said the unit has 1,830 megawatts of owned assets, including wind, geothermal, solar and hydroelectricity.
MidAmerican took legal advice from general counsel Doug Anderson and a Gibson, Dunn & Crutcher LLP team includng Peter Hanlon, Nicholas Politan, Emad Khalil, Saptak Santra, Jonathan Gordon, Michelle Magbalon, William Simmons, William Holloway, Janine Durand, Jessica Basil, Amy Forbes, Douglas Champion and Thomas McHenry. Akin Gump Strauss Hauer & Feld LLP's Adam Umanoff assisted SunPower.
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The asset, which began operating in 2005, is attractive because its contract to sell its entire transmission capacity to the Long Island Power Authority until 2032 provides a stable cash flow. More video