Idaho Power Awards Geothermal PPA
March 23, 2007
U.S. Geothermal Inc. has been named as the successful bidder for Idaho Power Company's request for proposals (RFP, which was sent out last August for up to 100 megawatts (MW) geothermal electricity, enabling negotiations for a 25-year power purchase agreement (PPA) between the two companies for an annual average of 45.5 megawatts (MW).
"We're very pleased that Idaho Power recognizes the value of our proposal and may ultimately purchase a significant amount of electricity from us," said Daniel Kunz, President and CEO of U.S. Geothermal Inc. "Considering our current negotiations with a utility in the Pacific Northwest for the full output from the planned 13 megawatt Unit 2 plant at Raft River, this PPA will provide our company up to 65 megawatts of sales under long-term agreements -- forming a strong foundation for growth in the coming years."
U.S. Geothermal's proposal, one of many competing proposals to have been submitted, to develop an annual average of 45.5 megawatts with a seasonal peak of 52 MW for Idaho Power Company includes:
-- Full output, all hours of the year, for 26 MW from U.S. Geothermal's Neal Hot Springs property in eastern Oregon.
-- Full output, all hours of the year, for 13 MW from Unit 1 of U.S. Geothermal's Raft River project, a 13-MW power plant under construction that will be online later this year (Idaho Power has already signed a PPA with U.S. Geothermal for the first 10 MW of electricity from that plant).
-- Full output, all hours from June through November, for 13 MW from Unit 3 of the Raft River project. The company is currently negotiating with a utility in the Pacific Northwest for the full output from Unit 3, all hours from December to May.
While U.S. Geothermal's proposals are contingent upon the viability of geothermal resources at Raft River and Neal Hot Springs, Kunz said current drilling results and other technical studies of the resources show promise of surpassing the requirements for the proposals.