Utah, United States [RenewableEnergyWorld.com] Raser Technologies, Inc. announced it has executed a power purchase agreement (PPA) with the Salt River Project Agricultural Improvement and Power District (SRP) for its Lightning Dock geothermal power plant in New Mexico. The PPA will provide for the delivery of approximately 10 megawatts (MW). Under the agreement Raser plans to begin delivering electricity on or before December 15, 2008.
Raser’s PPA with SRP provides for a stated selling price with annual increases over the term of the agreement. The PPA also provides for an increase in the price per MW-hours if the Federal production tax credit (PTC) for renewable power is not extended and the project does not qualify for the production tax credit in its current form. SRP has the right of first refusal for any additional power produced by the Lightning Dock project if it is expanded.
“We see an increasing demand from utilities and municipalities like SRP for green power which reduces emissions and reduces our energy dependence on fossil fuels,” said Maddie Reicher of Evolution Markets Inc. “A number of additional states have recently adopted renewable portfolio standards (RPS) mandating that a minimum percentage of power supplied by these utilities to their customers come from renewable energy sources like Raser’s geothermal project in New Mexico. Raser is well positioned with its geothermal energy pipeline approach to help them meet the growing demands from businesses and residents and meet the higher standard of renewable energy use.”