Latest newsU.S. GEOTHERMAL ANNOUNCES
POWER PURCHASE AGREEMENT FOR
PLANNED RAFT RIVER UNIT TWO
BOISE,Idaho - March 12, 2008 (OTCBB: UGTH, TSX: GTH)U.S. Geothermal Inc. ("U.S. Geothermal"), 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.
Please visit our Website at: www.usgeothermal.com