Dear Eric Sicre,
NEWS
RELEASE
DATE: MAY 20,
2008
FOR IMMEDIATE RELEASE
TRADING SYMBOLS: TSX-V
(Canada): WGP.V
FRANKFURT: WE6.F
WESTERN
GEOPOWER SIGNS $500 MILLION
POWER PURCHASE
AGREEMENT WITH NCPA
VANCOUVER, Canada, May
20, 2008, TSX Venture Exchange Trading Symbol: WGP – Western GeoPower Corp., a renewable energy
development company, today announced the signing of a Power Purchase
Agreement (“PPA”) with Northern California Power Agency
(“NCPA”) of Roseville, California for the supply of approximately
265,000 MWh per year of clean, renewable, baseload electricity at a levelized
price of $98 per MWh for 20 years, from Western
GeoPower’s 35 MWe Unit 1 geothermal power plant
scheduled to come on line in early 2010 at The Geysers Geothermal Field in
Northern California. The PPA is not subject to any further approvals.
“The execution of
this PPA reflects the tremendous spirit of cooperation that has been created
between NCPA and Western GeoPower
and is a significant milestone in the development of our Unit 1
project,” said Kenneth MacLeod,
President and Chief Executive Officer of Western
GeoPower. “The PPA represents approximately $26
million per year in revenue to Western
GeoPower, and $520 million over the 20-year
term of the contract. The power price reflects the increase in California’s
power prices as announced by the California Public Utilities Commission in
November 2007.”
“Our commitment to
explore and develop innovative and effective “green power” energy
programs is reflected in this agreement,” said Jim
Pope, General Manager of NCPA. “By securing the
geothermal power from the Western GeoPower
Unit 1, our member communities in Northern and Central
California will continue to benefit from what we consider to be
the prime source of reliable, sustainable energy compared to the cleanest
natural gas-fired sources. The addition of this unit to our resources
now expands our geothermal production from four to five plants at The
Geysers.”
For over 25 years, NCPA
has been operating 4 geothermal power plants of 55 MWe each at The Geysers,
located approximately 6 miles (10 km) southeast of the Western
GeoPower Unit 1 project site. NCPA also owns and operates
the steam field on which the plants are situated, including 8 deep injection
wells used to re-supply the geothermal reservoir with water to create
additional steam. This PPA increases the amount of geothermal power
used by NCPA and its customers in Northern California by approximately 30%
and will emit approximately 4 billion less pounds of CO2 compared to even the
cleanest natural gas-fired plant over the life of the contract.
The Geysers geothermal
field, located 75 miles north of San
Francisco, California,
is the largest producer of geothermal electricity in the world. Commercial
geothermal power has been generated continuously at The Geysers field since
1960, the present generation level being about 900 MWe of clean, baseload
electricity. Western GeoPower's
Unit 1 project is situated in the south-western region of The Geysers field
in Sonoma County.
About Northern California Power Agency (NCPA)
NCPA, located in Roseville,
California, is a joint powers agency that provides support for the electric
utility operations of 17 member communities and districts in Northern and Central California. Founded in 1968, NCPA owns and
operates several power plants that together comprise a 96% emission-free
generation portfolio. NCPA has been operating 4 geothermal power plants
of 55 MWe each at The Geysers, 252 MWe hydroelectric plants, 125 MWe Simple
Combustion Turbine plants and 49.9 MWe Steam Injected Combustion Turbine
plants, for over 25 years.
About Western GeoPower Corp.
Western GeoPower Corp. is a renewable energy
company dedicated to the development of geothermal energy projects for the
delivery of clean, sustainable, baseload electricity generation. The Company
is developing The Western GeoPower Unit 1 geothermal power plant at The
Geysers Geothermal Field in California, United States and the South Meager
Geothermal Project in British Columbia, Canada.
On behalf of Western
GeoPower Corp.
“Kenneth
MacLeod”
Kenneth MacLeod, President & CEO
Cautionary Note Regarding
Forward-Looking Statements
Statements in this release
that are forward-looking are subject to various risks and uncertainties
concerning the specific factors identified above that reflect the
Company’s expectations and projections about its future
results. The Company has tried whenever possible to identify
these forward-looking statements which include but are not limited to, words
such as “anticipates,” believes,” “estimates,”
“expects,” “plans,” “intends,”
“potential,” and similar expressions. Although the Company
believes the expectations expressed in such forward-looking statements are
based on reasonable assumptions, such statements are not guarantees of future
performance and actual results or developments may differ materially from
those in the forward-looking statements. Investors are cautioned that
any such statements are not guarantees of future performance and that actual
results or developments may differ materially from those projected in the
forward-looking statements. The Company disclaims any obligation or
intention to update or to revise any forward-looking statement, whether as a
result of new information, future events or otherwise. Such information
contained herein represents management's best judgment as of the date hereof
based on information currently available.
The TSX Venture Exchange does not accept responsibility
for the adequacy or accuracy of this release. For more information or to be
put on our email list, please contact our office: (604) 662-3338 or US/Canada
Toll Free: 1-866-662-3322, email: info@geopower.ca
Investor Relations: IR@geopower.ca
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