Message #11 From:
Stock News Bot Date: March 31, 2008 09:40:58 AM
Retransmission: U.S. Geothermal Announces Power Purchase Agreement for Planned Raft River Unit Two
U.S. Geothermal Inc. ("U.S. Geothermal") (TSX: GTH)(OTCBB: UGTH), a
renewable energy company focused on the production of electricity from
geothermal energy, announced that Eugene Water and Electric Board
("EWEB"), of Eugene Oregon, has signed a power purchase agreement
("PPA") for the planned Unit Two power plant at Raft River. The PPA
allows for variable electrical output up to a maximum of 16 megawatts
with a term of 25 years. The PPA is subject to successful drilling and
resource development at Raft River. Under the terms of a related
agreement entered into by U.S. Geothermal, EWEB and the Bonneville
Power Administration ("BPA"), the power generated from Unit Two at Raft
River will be delivered to BPA's customer load in Idaho. The same
amount of power will be made available by BPA to serve EWEB's load.
"EWEB has been at the forefront of developing renewable energy
resources to meet its increased demand and we welcome them as a
potential new customer for Raft River. We extend our thanks to BPA for
supporting renewable energy development at Raft River," said Daniel
Kunz, President and Chief Executive Officer of U.S. Geothermal.
A computer model of the Raft River reservoir is being developed
which includes data collected from current injection and production
well tests. The model will be used to help locate new wells for
increasing production at Unit One, from its current production of
between 9 to 9.5 megawatts, to the plant's full output potential of an
annual average of 13 megawatts and for the planned development of Unit
Two. A development timetable for U.S. Geothermal projects including
Raft River Unit Two is being finalized and will be announced within the
next calendar quarter.
About U.S. Geothermal:
U.S. Geothermal is a renewable energy development company that is
operating a geothermal power project at Raft River, Idaho and
developing Neal Hot Springs in eastern Oregon. U.S. Geothermal holds,
through ownership or lease, geothermal rights of lands that comprise
the Raft River and Neal Hot Springs projects.
The information provided in this news release may contain
forward-looking statements within the definition of the Safe Harbor
provisions of the US Private Securities Litigation Reform Act of 1995,
including statements regarding potential energy resources and projects,
development possibilities for Raft River and Neal Hot Springs. These
statements are based on U.S. Geothermal Inc.'s current expectations and
beliefs and are subject to a number of risks and uncertainties that can
cause actual results to differ materially from those described. Readers
are cautioned to review the risk factors identified by the company in
its filings with Canadian and US securities agencies. Forward-looking
statements are based on management's expectations, beliefs and opinions
on the date the statements are made. U.S. Geothermal Inc. assumes no
obligation to update forward-looking statements if management's
expectations, beliefs, or opinions, or other factors, should change.
The TSX and OTC Bulletin Board Exchanges do not accept responsibility for the adequacy of this release.
