Idaho Power and U.S. Geothermal sign purchase agreement

Source: Energy Digital

Date :26/09/2007 11:42:47

U.S. Geothermal Inc. has signed of a new, 13-megawatt, full output power purchase agreement with Idaho Power Company, a subsidiary of Idacorp, Inc.

The new PPA will replace an existing 10-megawatt, 20-year PPA and is part of Idaho Power's 2006 formal request for geothermal electricity under which the company was named the sole successful bidder in March 2007.

The new PPA is for electricity sales of an annual average of 13-megawatts and has a 25-year term. It is the first contract signed as part of ongoing negotiations with Idaho Power for a total of 45.5-megawatts and may be used as a template for the additional PPAs. Idaho Power will submit the new PPA to the Idaho Public Utility Commission for their final approval, which is expected within the next 60 to 90 days. The existing 10-megawatt PPA will remain in effect until the Idaho Public Utilities Commission approves the new PPA.

"We're happy to complete this important step with our initial customer, Idaho Power, who may ultimately purchase a significant amount of electricity from us," says Daniel Kunz, President and CEO of U.S. Geothermal Inc.

The production and injection wells, and geothermal resource at Raft River have been independently certified to contain adequate hydrothermal energy for the long-term supply of the 13-megawatt geothermal power plant currently under construction and expected to be online during the 4th quarter of 2007. Additional power plants at Raft River and power plant development at the company's second property, Neal Hot Springs in Oregon, are dependent upon the successful drilling of new production wells at both locations. Drilling is expected to begin in the first quarter of 2008.