Boise, Idaho, June 21, 2012 — U.S. Geothermal achieved commercial operation at unit 1 of the San Emidio geothermal power plant.
Electrical energy from the new power plant is now being sold to NV Energy for $89.75 per MWh, under the terms of a 25-year power purchase agreement. The new power plant is projected to generate an average of about 71,500 MWh of electrical power each year.
The new power plant replaces an existing facility that, prior to being removed from service, generated about 23,000 MWh annually using the same production and injection wells.
USG Nevada LLC expects to immediately file for the Section 1603 ITC cash grant of about $11 million for the project. Proceeds from the ITC grant will be used to repay an existing $7.5 million bridge loan and the balance will be available for general corporate purposes. The arrangement of long-term financing for the project can now move forward.
The project engineering, procurement and construction contractor is working to complete a final list of items required to achieve contract completion under a fixed price contract that includes financial guarantees for the original completion date and power output of the plant.
U.S. Geothermal Inc. is a renewable energy development company operating geothermal power projects at Raft River, Idaho and San Emidio, Nevada. The Neal Hot Springs project, located in eastern Oregon, is currently under construction and will be the company's third operating power project. The company holds geothermal energy rights to 69,500 acres comprising six advanced stage geothermal development projects.