Geothermal Power Purchase Agreement for Raft River Project

[] U.S. Geothermal has entered into a power purchase agreement (PPA) with Idaho Power Company for the electrical output from Phase One of the Raft River geothermal power project. The 20-year contract is a necessary step to complete development for the 10 MW geothermal site. U.S. Geothermal stated it expects a contract decision by the end of January. The Raft River Phase One power plant is scheduled to begin power generation in mid 2006, and will receive payments under a price schedule that starts with $51.50 per MW and increases 2.3 percent annually to a maximum of $81.25 per MW over the 20-year term of the contract. The published prices are established for electric power only. US Geothermal retains ownership of any renewable energy credits and intends to market them separately.