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May 15, 2006

New Plant to Supply 20 MW of Geothermal Power in 20-Year PPA

Reno, Nevada [RenewableEnergyAccess.com]

In a joint announcement by Sierra Pacific Resources and Ormat Technologies, the Galena No. 3 Geothermal Power Project will be integrated into Ormat's existing Steamboat Geothermal Complex in Washoe County, Nevada. It is expected to increase the total output supplied from the Steamboat Known Geothermal Resource Area (KGRA) to Sierra Pacific Power Company by between 15 and 25 megawatts (MW), bringing the total output of the Steamboat KGRA to approximately 90 MW.

"Nevada's renewable standards and goals are among the most ambitious in the nation."

-- Walter Higgins, Sierra Pacific Resources, chairman and CEO

The Galena No. 3 project will be an air-cooled binary power plant that re-injects 100 percent of all geothermal fluid produced, while consuming no water or chemicals. Additionally, as geothermal power works continuously, the Galena No. 3 plant will provide base load power 24 hours per day, 7 days per week. Ormat said that, when complete, the total output of the Steamboat KGRA will be sufficient to power 90,000 residences in the Reno-Sparks area.

Sierra Pacific Power Company, Sierra Pacific Resources northern Nevada utility, and ORNI 14 LLC, a subsidiary of Ormat Nevada, Inc., have signed a 20-year Power Purchase Agreement (PPA) for the sale of energy to be produced from Galena No. 3. The PPA is subject to approval by the Public Utilities Commission of Nevada and will be submitted to the agency this month. Galena No. 3 is projected to come online in 2008.

"Nevada's renewable standards and goals are among the most ambitious in the nation," said Walter Higgins, chairman and chief executive officer of Sierra Pacific Resources. "Sierra Pacific Resources can and will achieve the state's goals by working closely with companies such as Ormat..."

This agreement marks the 10th PPA between Ormat and Sierra Pacific Power, and the fourth executed since the enactment of Nevada's renewable portfolio standard legislation in 2001.

Lucien Bronicki, chairman of Ormat said, "This collaboration in the development of Nevada's geothermal potential, estimated at 1500 MW by the Western Governor's Association task force, will help to make Nevada a leader in geothermal technologies."
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