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Acquisitions
6 Months Ended
Jun. 30, 2014
Business Combinations [Abstract]  
ACQUISITIONS
ACQUISITIONS
Adobe Solar, LLC
See Note 2 to the financial statements of Southern Power under "Adobe Solar, LLC" in Item 8 of the Form 10-K for additional information.
On April 17, 2014, Southern Power and TRE, through Southern Turner Renewable Energy, LLC (STR), a jointly-owned subsidiary owned 90% by Southern Power, acquired all of the outstanding membership interests of Adobe Solar, LLC (Adobe) from Sun Edison, LLC, the original developer of the project. Adobe constructed and owns an approximately 20-MW solar photovoltaic facility in Kern County, California. The solar facility began commercial operation on May 21, 2014 and has the entire output of the plant contracted under a 20-year PPA with Southern California Edison Company. The acquisition is in accordance with Southern Power's overall growth strategy.
Southern Power's acquisition of Adobe included cash consideration of approximately $90.5 million. The outstanding balance of $4.7 million remains to be paid upon completion of certain milestones. As of June 30, 2014, the purchase price was recorded primarily as property, plant, and equipment with $13.4 million recorded in receivables reflecting reimbursable transmission costs; however, the allocation of the purchase price to individual assets has not been finalized. The acquisition did not include any contingent consideration. Acquisition-related costs were expensed as incurred and were not material.
Macho Springs Solar, LLC
On May 22, 2014, Southern Power and TRE, through STR, acquired all of the outstanding membership interests of Macho Springs Solar, LLC (Macho Springs) from First Solar Development, LLC, the original developer of the project. Macho Springs constructed and owns an approximately 50-MW solar photovoltaic facility in Luna County, New Mexico. The solar facility began commercial operation on May 23, 2014 and has the entire output of the plant contracted under a 20-year PPA with El Paso Electric Company. The acquisition is in accordance with Southern Power's overall growth strategy.
Southern Power's acquisition of Macho Springs included cash consideration of approximately $130.0 million. As of June 30, 2014, the purchase price was recorded primarily as property, plant, and equipment; however, the allocation of the purchase price to individual assets has not been finalized. The acquisition did not include any contingent consideration. Acquisition-related costs were expensed as incurred and were not material.