Increase in rate The June 30 quarterly financial statements said the following:
"The Company has been engaged in an ongoing dialogue with the Nicaraguan power distributor Disnorte-Dissur, a subsidiary of the Spanish utility Gas Natural Fenosa and the San Jacinto Project's power offtaker (“Disnorte-Dissur”), as well as a number of ministries within the Nicaraguan Government to increase the power sales tariff for the San Jacinto Project. The increase would allow the Company to recover unanticipated costs associated with both the development of the resource and plant construction at the San Jacinto Project. A proposal is currently being discussed which would result in a power sales tariff increase of approximately 15% to 20% with an annual escalation for the life of the power purchase agreement (“PPA”). If approved, the new tariff would result in an annual increase of approximately $8 - $11 million of revenue upon the completion of the full 72 MW expansion. The Company is in the process of obtaining formal approval of the tariff increase by the relevant ministries of the Nicaraguan Government."
What this tells me is that the increase negotiated (17%) was within the expected range.
G