Berkshire Subsidiary Buys SunPower Projects
Jan 2nd 2013 3:05PM
Updated Jan 2nd 2013 3:10PM
MidAmerican Solar and SunPower announced Wednesday that MidAmerican has acquired 579 megawatts worth of solar projects from SunPower.
MidAmerican Solar is a subsidiary of MidAmerican Renewables, which is a subsidiary of MidAmerican Energy Holdings, which is a subsidiary of Warren Buffett's Berkshire Hathaway
The projects in question, the Antelope Valley Solar Projects, consist of two co-located projects in Kern and Los Angeles counties in California covering a combined 3,230 acres. MidAmerican notes that together, they constitute "the largest permitted solar photovoltaic power development in the world," using SunPower's own branded equipment to produce solar power.
According to a filing with the SEC, MidAmerican will be paying between $2 billion and $2.5 billion to Sunpower for the engineering, procurement, and construction contracts and membership interest purchase agreements.
When completed at the end of 2015 the new holding intends to sell its solar power to Southern California Edison under a pair of long-term power purchase contracts already approved by the California Public Utilities Commission. According to U.S. Environmental Protection Agency estimates, the project is expected to offset more than 775,000 tons of carbon dioxide emissions per year, equivalent to the pollution produced by almost 3 million cars, the companies said.
This is the third major solar investment by MidAmerican, which also owns the 550-megawatt Topaz Solar Farms in San Luis Obispo County, Calif., and owns a 49% interest in the 290-megawatt Agua Caliente solar project in Yuma County, Ariz.
The article Berkshire Subsidiary Buys SunPower Projects originally appeared on Fool.com.Fool contributor Rich Smith has no positions in the stocks mentioned above. The Motley Fool owns shares of Berkshire Hathaway. Motley Fool newsletter services recommend Berkshire Hathaway. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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