MidAmerican Energy buying California solar power plant

CEDAR RAPIDS - California sunshine will be providing electrical power for MidAmerican Energy Holdings of Des Moines.

The corporate parent of MidAmerican Energy has signed agreements to purchase the Topaz Solar Farm in San Luis Obispo, Calif., from First Solar Inc. for an undisclosed price. The 550-megawatt photovoltaic power plant will have the capacity to generate enough electricity to power about 160,000 average California homes.

The more than $2 billion Topaz Solar Farm is one of the two largest photovoltaic projects in the world. Both projects are being constructed by First Solar.

MidAmerican Energy is the largest owner of wind-powered energy generation in the United States. Greg Abel, president and chief executive officer of MidAmerican Energy Holdings, said adding photovoltaic-generated energy was a logical step for the electric and natural gas utility holding company.

"Our investment in wind resources benefits our customers and the environment, and our entry into the solar energy industry expands our renewable energy footprint and will help meet current and future energy needs in a manner that reflects our ongoing commitment to environmental respect and cost-effective generation," Abel said in a statement announcing the Topaz Solar Farm purchase.

First Solar has agreed to construct, operate and maintain the Topaz project for MidAmerican. Construction began in November and is expected to be complete by early 2015. Pacific Gas and Electric Co. will purchase the electricity from Topaz under a 25-year power purchase agreement.

The First Solar project will create about 400 construction jobs and 15 ongoing operations and maintenance jobs. The project is estimated to generate $417 million for the local economy, the majority of which will be generated during construction, with the remainder over the project's minimum 25-year operating period, according to an economic benefits study by The Brattle Group and California Polytechnic State University.

MidAmerican Energy Holdings' purchase of the Topaz Solar Farm is contingent on the satisfaction of certain closing conditions specified in the acquisition agreement, including certain required actions with respect to the project's permits and electrical interconnection arrangements. The deal is not contingent on MidAmerican obtaining debt financing.