US Geothermal, Idaho Power in 13 MW power deal

Boise, Idaho-based U.S. Geothermal (OTC: UGTH) said today it upgraded its power purchase agreement with Idaho Power, signing a new 13 megawatt, 25 year agreement.

Today's deal replaces an existing 10 megawatt, 20 year deal with Idaho Power, a unit of Idacorp (NYSE: IDA).

"We're happy to complete this important step with our initial customer, Idaho Power, who may ultimately purchase a significant amount of electricity from us," said Daniel Kunz, president and CEO of U.S. Geothermal.

U.S. Geothermal, which also runs operations out of Vancouver, was first named the successful bidder for Idaho Power's request for geothermal electricity in March (see U.S. Geothermal wins 46 MW Idaho Power contract).

U.S. Geothermal said this is the first contract signed as part of ongoing negotiations with Idaho Power and may be used as a template for additional power purchase agreements.

The agreement is subject to Idaho Public Utility Commission approval, which is expected within the next 60 to 90 days.

The existing 10 megawatt deal will remain in effect until the commission approves the new PPA.

U.S. Geothermal said its 13 MW geothermal plant in Raft River, Idaho, is currently under construction and set to go online in the fourth quarter of 2007.

The company said additional drilling at its Raft River and Neal Hot Springs, Ore., sites is expected to begin in the first quarter of 2008.

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