US Geothermal Signs Two New 10-Megawatt Power Sales Agreements
May 9, 2005
BOISE, Idaho, May 9, 2005 U.S. Geothermal Inc., a renewable energy development company focused on geothermal energy, announced today that on May 5, 2005, it entered into two additional 10 megawatt ("MW") Power Sales Agreements ("PSA's") with Idaho Power Company for the electrical output from the projected second phase of the Raft River Geothermal Power Project. The phase two power plants are scheduled to begin power generation in December 2008. Under terms of the PSA's, US Geothermal will receive payments for power generated under a price schedule that starts at $53.90 per MW and increases 2.3 % annually to a maximum of $85.04 per MW over the 20-year term of the contract.
"With 30 Megawatts of power generation under long term contract, we are making decisive progress in the planned development of the Raft River geothermal reservoir," said Daniel Kunz, President & CEO of U.S. Geothermal Inc.
The 20-year PSA's are regulated by the Idaho Public Utilities Commission ("IPUC") which provides published electric power prices for the monthly average output of 10 MW of electric power. The PSA's will be submitted to the IPUC for final approval, which is expected to take 30-45 days. The published rates are established for electric power only. U.S. Geothermal retains ownership of any renewable energy credits ("Green Tags" and "Carbon Credits"), and intends to market them separately, which could significantly enhance the profitability of the project.
About US Geothermal:
US Geothermal is a renewable energy development company that is developing a geothermal power project at Raft River, Idaho. The Company possesses three Power Sales Agreements with the Idaho Power Company for the production of 30 MW of electricity at Raft River. Construction of the phase one power plant is planned to begin in 2005 with power production in 2006. Based on a report prepared by Company's independent consultant, GeothermEx Inc., of Richmond California, the Company believes that Raft River's energy reservoir is scalable to produce an estimated 90 MW of power from 6.5 square miles (16.8 square kilometres) of lands owned or leased by the Company. Adjacent to the existing electrical transmission grid and surrounded by modern infrastructure, Raft River is ideally located to make an important contribution to the power needs of the rapidly growing Pacific Northwest for decades to come.
Please visit our Website at: www.usgeothermal.com