California-based electric power generator Panoche Energy Center LLC (PEC) demonstrated higher availability over 2024, increasing capacity and fixed operations and maintenance (O&M) payments under its tolling agreement with Pacific Gas and Electric Co. (PG&E). PEC met unbudgeted expenses attributable to 2023 outages with a mix of operational cash, insurance proceeds, and a draw on its $5.5 million letter-of-credit-backed availability reserve. We expect the final outage-related expenses surrounding combustion turbine (CT) major maintenance and repair to roll off in 2025. We also anticipate the remainder of the project?s original equipment (CT-1 and CT-3) will be reinstalled in the second quarter of 2025 and forecast availability of about 96% under our base case. Our base case also incorporates full replenishment of the
