Western GeoPower Cancels PPA with PG&E

Western GeoPower Corp. has announced that it has exercised its right to terminate the Power Purchase Agreement (PPA) dated May 9, 2007 between its wholly-owned subsidiary Western GeoPower, Inc. and Pacific Gas & Electric Company (PG&E). The PPA was for the supply of electricity from the proposed Western GeoPower Unit 1 at The Geysers Geothermal Field in California.

According to Western, the PPA was terminaed because California Public Utilities Commission approval was not received within the time-frame stipulated in the PPA. The Geysers Geothermal Field, located 75 miles north of San Francisco, California, is the largest producer of geothermal electricity in the world.

“The termination of the Power Purchase Agreement will not affect the projected start of commercial operations in early 2010 for the Western GeoPower Unit 1 power plant,” said Kenneth MacLeod, president and CEO of Western GeoPower.