Panoche Energy Center LLC (PEC) is a nominal 400-megawatt (MW) gas-fired, simple-cycle power plant about 50 miles west of Fresno, Calif. The project started commercial operations in 2009. PEC is owned by funds managed by Ares EIF Management LLC (not rated). PEC earns revenue through a long-term power purchase agreement (PPA) with Pacific Gas&Electric Co. (PG&E; BB-/Negative). It contracts day-to-day operations and maintenance to NAES Corp. (not rated). A contractual services agreement with GE Energy, an affiliate of General Electric Co. (BBB+/Watch Neg), covers major maintenance. The structure of the compliance period in the extended period is the same, and we continue our assumption of treating carbon compliance costs as an annual expense. In addition, Panoche will receive
