Nevo Energy Inc fka NEVE

[ragmuff]

SOLARGEN ENERGY, INC.
20400 Stevens Creek, Suite 740
Cupertino, CA 95014
CUSIP: 83416J102
TRADING SYMBOL: SLGE.PK
2
SOLARGEN ENERGY, INC.
CURRENT REPORT
DECEMBER 2, 2010
The information set forth below follows guidelines for providing adequate current information; as
amended, outlined by Pinksheet OTC Markets, Inc., and generally follows the sequential format set
forth in those rules. THIS CURRENT REPORT HAS NOT BEEN FILED WITH THE SEC OR
ANY OTHER REGULATORY AGENY.
This Current Report contains certain forward looking statements, as defined in the Private Securities
Litigation Reform Act of 1995, including or related to our future results, events and performance
(including certain projections, business trends and assumptions on future financings), and our
expected future operations and actions. In some cases, you can identify forward-looking statements
by the use of words such as “may,” “should,” “plan,” “future,” “intend,” “could,” “estimate,”
“predict,” “hope,” “potential,” “continue,” “believe,” “expect” or “anticipate” or the negative of these
terms or other similar expressions. These forward-looking statements generally relate to our plans and
objectives for future operations and are based upon management’s reasonable estimates of future
results or trends. In evaluating these statements, you should specifically consider the risks that the
anticipated outcome is subject to, including the factors discussed under "RISK FACTORS" detailed
in our Annual Report and Quarterly Reports previously filed with the OTC Disclosure and News
Service under our Company page at <http://www.otcmarkets.com/stock/SLGE>;.
Item 4. Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet
Arrangement of an Issuer.
The California Independent System Operator Corporation (“CAISO”) has approved
Solargen’s Phase I Interconnection Request (“Interconnection Request”) for Solargen’s proposed 400
MW Panoche Valley Solar Farm Project (“Project”). CASIO’s approval of a maximum permitted net
output to the CAISO controlled-grid at 400 MW permits Solargen’s Project to be interconnected to
the Pacific Gas and Electric Company’s (“PG&E’s”) 230 kV lines with a proposed commercial
operation date of the Project by December 15, 2013.
The approval of the Interconnection Request represents a major milestone in the development
of Solargen’s Project. In accordance with Federal Energy Regulatory Commission approved Large
Generator Interconnection Procedures (LGIP) for Interconnection Requests, certain electrical system
reinforcements are necessary to mitigate the potential adverse impacts on the PG&E power grid
caused by the Project and other projects included in the phase cluster study under various system
conditions. CAISO’s current estimated maximum costs associated with mitigating these adverse
impacts and upgrading the PG&E electrical power grid to accommodate Solargen’s 400 MW Project
are currently projected at approximately $165 million. Through a negotiation process and
adjustments made in all the projects within the cluster, these costs could be reduced, even
substantially, and will be finalized at the conclusion of the Phase 2 study. These transmission system
upgrade costs are ultimately borne by PG&E. However, Solargen must provide a posting of a
financial security for network upgrades (“Interconnection Financial Security”) prior to the start of
construction as part of the application process. The Interconnection Financial Security can come in
the form of a letter of credit or parent company guarantee. Any financing required to upgrade the
system will be reimbursed under contract by PG&E upon commercial operation of the Project.
The Interconnection Financial Security is required to be issued by Solargen to PG&E at three
times during the application process. The first letter of credit in the amount of approximately $7.5
million is due on February 20, 2011. The remaining Interconnection Financial Security will be due in
3
January 2012 and prior to the start of construction activities for the network upgrades in letters of
credit currently estimated at approximately $50 million and $107 million, respectively. Though the
Phase I estimates typically represent the maximum cost, the aggregate amount of the Interconnection
Financial Security for network upgrades costs may increase or decrease depending on the results of
the Phase II report from CASIO, which is expected in July 2011. The failure by Solargen to timely
post the Interconnection Financial Security required by PG&E would result in Solargen’s
Interconnection Request being removed from the application process. In the event of removal from
the current Interconnection Request, Solargen would have to resubmit an Interconnection Request to
CASIO for access to the PG&E power grid. There can be no guarantee that if Solargen were to
resubmit the Interconnection Request, that there would be sufficient capacity without additional
upgrades to the PG&E power grid. Solargen is soliciting financial partnerships with investors to assist
in providing the necessary financial security to continue in the LGIP Interconnect Request process.
Certification.
I, Michael L. Peterson, certify that:
1. I have reviewed this Current Report of Solargen Energy, Inc.; and
2. Based on my knowledge, this disclosure statement does not contain any untrue statement of a
material fact or omit to state a material fact necessary to make the statements made, in light
of the circumstances under which such statements were made, not misleading with respect to
the period covered by this disclosure statement.
/s/ Michael L. Peterson, President
Date: December 2, 2010.