BOISE, IDAHO--(Marketwired - March 8, 2016) - U.S. Geothermal Inc. (NYSE MKT:HTM), a leading and profitable renewable energy company, announced today that on March 6, 2016 Western GeoPower, Inc., its wholly owned subsidiary, received the fully executed Large Generator Interconnection Agreement ("LGIA") for the WGP Geysers geothermal project with the California Independent System Operator ("CAISO") and Pacific Gas & Electric ("PG&E").
The WGP Geysers project is located in Sonoma County, California, approximately 90 miles north of San Francisco and is one of four major projects under development by US Geothermal. Reservoir testing has determined that a steam resource capable of supporting a 30 MW power plant exists on the property.
"This agreement is an important milestone in our development of the WGP Geysers Project," said Dennis Gilles, CEO of U.S. Geothermal. "It allows us to gain access to the transmission grid and means that we can now offer a firm delivery date in our PPA negotiations."
The LGIA is the most critical document in the overall process for interconnecting the planned geothermal power plant to the CAISO controlled PG&E transmission system. The agreement provides for up to 35 megawatts of transmission capacity and allows for a Commercial Operations Date as early as June 1, 2018. An engineering study completed by CAISO estimated the construction cost for the new interconnection facilities to be $1.9 million. A $1 million deposit for financial security in connection with the LGIA was made February 5, 2016. In addition to the interconnection facilities covered in the LGIA, a 1.7 mile 115-kV transmission line will be required.
PG&E is responsible for the design, engineering, and construction of the new interconnection facilities. The interconnection facilities are part of the development plan for the WGP Geysers Project that is currently scheduled to begin power sales by mid-2018. U.S. Geothermal is currently having discussions with several interested parties with respect to a long term Power Purchase Agreement ("PPA") for the project and preparing to submit proposals. Once a PPA is obtained, the company will pursue funding for construction of the project. The WGP Geysers Project qualifies for the Federal 30% investment tax credit.
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About U.S. Geothermal Inc.:
U.S. Geothermal Inc. is a leading and profitable renewable energy company focused on the development, production and sale of electricity from geothermal energy. The company is currently operating geothermal power projects at Neal Hot Springs, Oregon, San Emidio, Nevada and Raft River, Idaho for a total power generation of approximately 45 MWs. The company is currently developing this project at the Geysers, California, in addition to a second phase project at San Emidio, Nevada, a project at Crescent Valley, Nevada, and a project at El Ceibillo, in Guatemala. U.S. Geothermal's growth strategy is to reach 200 MWs of generation by 2020 through a combination of internal development and strategic acquisitions.
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. Readers are cautioned to review the risk factors identified by the company in its filings with US and Canadian securities agencies. All statements, other than statements of historical fact, included herein, without limitation, statements relating to the future operating or financial performance of U.S. Geothermal, are forward-looking statements. Forward-looking statements are frequently, but not always, identified by words such as "expects", "anticipates", "believes", "intends", "estimates", "potential", "possible", and similar expressions, or statements that events, conditions, or results "will", "may", "could", or "should" occur or be achieved. These forward-looking statements may include statements regarding perceived merit of properties; interpretation of the results of well tests; project development; resource megawatt capacity; capital expenditures; timelines; strategic plans; or other statements that are not statements of fact. Forward-looking statements involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate, and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from U.S. Geothermal's expectations include the uncertainties involving the availability of financing in the debt and capital markets; uncertainties involved in the interpretation of results of well tests; the need for cooperation of government agencies in the development and operation of properties; the need to obtain permits and governmental approvals; risks of construction; unexpected cost increases, which could include significant increases in estimated capital and operating costs; and other risks and uncertainties disclosed in U.S. Geothermal's Annual Report on Form 10-K for the year ended December 31, 2015 filed with the United States Securities and Exchange Commission and Canadian securities regulatory authorities and in other U.S. Geothermal reports and documents filed with applicable securities regulatory authorities from time to time. 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.
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