US Geothermal Begins Idaho Geothermal Power Plant

First synchronization of the new geothermal power plant will be in September 2007 with full commercial operations by November 2007. The contract includes a bonus if the plant is synchronized by July 2007 and includes a guarantee for the total output capacity of the plant. Ormat Nevada is a subsidiary of Ormat Technologies, an international company with more than three decades of experience in the design, engineering, manufacturing, construction, and operation of geothermal power plants.

Plans include equipment and construction of a binary cycle geothermal power plant that is designed to deliver 10 megawatts (MW) monthly average electrical power to Idaho Power Company under a 20-year term power purchase agreement (PPA), the first phase of the Raft River Project.

US Geothermal is in negotiations with global investment banking, securities and investment management firm for long-term financing of this 10 MW phase one of the Raft River project. The project financing is expected to close by June 2006.

Discussions are also underway for the advancement of the 20 MW phase two expansion at Raft River. Initial work will include the drilling of new production and injection wells, the first new geothermal power plant wells to be drilled in Idaho in almost 30 years.