December 14, 2009
TRADING SYMBOLS:
In the U. S.: NYSE Amex: HTM and in Canada: TSX:
GTH
U.S. GEOTHERMAL SIGNS NEAL HOT
SPRINGS
PPA WITH IDAHO POWER
BOISE, Idaho
- December 14, 2009 (NYSE Amex: HTM, TSX: GTH)
U.S. Geothermal Inc. ("U.S. Geothermal"), a renewable
energy company focused on the development, production and sale of
electricity from geothermal energy, is pleased to announce that its wholly
owned subsidiary USG Oregon LLC has signed a power purchase agreement
("PPA") with Idaho Power Company ("Idaho Power"), a
subsidiary of Idacorp, Inc (NYSE: IDA). The 25-year PPA provides for the
sale of up to 25 megawatts ("MW") from the Neal Hot Springs
project in eastern Oregon.
Idaho Power will submit the PPA to the Idaho
Public Utilities Commission for their approval, which is expected within
the next 60 to 90 days. This PPA is the second geothermal energy supply
agreement U.S. Geothermal has signed with Idaho Power.
Daniel Kunz, President and CEO of U.S. Geothermal
said, "A key milestone in the development of Neal Hot Springs has been
achieved and we are pleased to expand our relationship with Idaho Power.
With this PPA we will deliver them a total of 35 megawatts of renewable
geothermal power from two of our projects".
Neal Hot Springs is currently being developed
using an air-cooled power plant with an annual average net output of 22 MW.
The project has been selected by the U.S. Department of Energy to
participate in direct loan negotiations for up to 80% of the estimated $106
million in total project costs. In addition, the project qualifies for the
new investment tax credit of 30% of total project costs which can be
converted into a cash grant from the US Treasury upon completion. U.S.
Geothermal has successfully drilled two production wells that have a
combined projected power plant output rating of nearly 15 MW subject to
drilling the required injection wells.
Currently, a temperature gradient well
drilling program is underway at Neal Hot Springs and is about 75% complete,
the results of which will be used to determine the location of the large
scale production and injection wells that remain to be drilled. Idaho Power
is under contract to design and construct a 10.3 mile transmission line and
substation from the Neal Hot Springs project site to their nearby
transmission grid. The project has already obtained a Conditional Use
Permit from the Malheur County Planning Commission for construction of the
project.
About U.S. Geothermal:
U.S. Geothermal is a renewable
energy development company with operating geothermal power plants at Raft
River, Idaho and San Emidio, Nevada A temperature gradient drilling program
is underway at the Neal Hot Springs project after the successful recent
completion of a second full scale production well. The development of Neal
Hot Springs is expected to result in U.S. Geothermal's third operating
geothermal power plant.
Please visit our Website at: www.usgeothermal.com
FOR ADDITIONAL INFORMATION PLEASE CONTACT:
Saf Dhillon - Investor Relations
Tel: 866-687-7059
Fax: 208-424-1030
saf@usgeothermal.com
The information provided in this news
release may contain forward-looking statements within the definition of the
Safe Harbor provisions of the US Private Securities Litigation Reform Act
of 1995. These statements are based on U.S. Geothermal Inc.'s current
expectations and beliefs and are subject to a number of risks and
uncertainties that can cause actual results to differ materially from those
described. Readers are cautioned to review the risk factors identified by
the company in its filings with Canadian and US securities agencies.
Forward-looking statements are based on management's expectations, beliefs
and opinions on the date the statements are made. U.S. Geothermal Inc. assumes
no obligation to update forward-looking statements if management's
expectations, beliefs, or opinions, or other factors, should change.
The NYSE Amex
and the TSX do not accept responsibility for the adequacy of this release.
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