US Geothermal Inc : San Emidio Achieves Commercial Production
06/21/2012| 11:02am US/Eastern
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TRADING SYMBOLS:
In the U. S.: NYSE MKT: HTM and in Canada: TSX: GTH June 21,
2012
U. S. GEOTHERMAL INC. ANNOUNCES SAN EMIDIO ACHIEVES
COMMERCIAL PRODUCTION
BOISE, Idaho - June 21, 2012 (NYSE MKT: HTM;
TSX: GTH) U.S. Geothermal Inc., a leading
renewable energy company focused on the development,
production and sale of electricity from geothermal energy, is
pleased to announce that its wholly owned subsidiary, USG
Nevada LLC, has notified its customer NV Energy that
Commercial Operation was achieved by the new 11.75 gross (8.6
net) megawatt Unit I power plant. Electrical energy from the
new power plant is now being sold for $89.75 per megawatt
hour ("MWH"), subject to a 1% annual escalator, under the
terms of a 25 year power purchase agreement. The new power
plant is projected to generate an average of approximately
71,500 MWHs of electrical power each year. The new power
plant replaces an existing facility that, prior to being
removed from service, generated approximately 23,000 MWH
annually using the same production and injection
wells.
Mr. Daniel Kunz, Chief Executive Officer of U.S. Geothermal
Inc., said, "This is a major milestone for our company, the
San Emidio project and the geothermal industry. New and
innovative power production technology is now deployed for
large-scale and highly efficient generation of electricity.
The San Emidio Unit I project was beset with delays that were
necessary to ensure that our contractor delivered a fully
functional power plant. This new plant is now operating and
delivering power on a commercial basis. We truly appreciate
the formidable efforts of our employees and contractors and
the confidence and patience of our lenders, customer, and
shareholders over the last several months".
USG Nevada LLC expects to immediately file for the Section
1603 ITC cash grant of approximately $11 million for the
project. Proceeds from the ITC grant will be used to repay an
existing $7.5 million bridge loan and the balance will be
available for general corporate purposes. The arrangement of
long term financing for the project can now move forward. The
project engineering, procurement and construction contractor
is working to complete a final list of items required to
achieve contract completion under a fixed price contract that
includes financial guarantees for the original completion
date and power output of the plant.
Please visit our Website at: http://www.usgeothermal.com
About U.S. Geothermal Inc.:
U.S. Geothermal Inc. is a leading renewable energy
development company that is operating geothermal power
projects at Raft River, Idaho and San Emidio, Nevada. The
Neal Hot Springs project, located in eastern Oregon, is
currently under construction and will be the company's third
operating power project. The company holds geothermal energy
rights to
69,500 acres comprising six advanced stage geothermal
development projects.
Website : www.usgeothermal.com
NYSE MKT: HTM TSX: GTH
FOR ADDITIONAL INFORMATION PLEASE CONTACT:
Saf Dhillon - Investor Relations
U.S. Geothermal Inc. Tel: 866-687-7059
Fax: 208-424-1030
saf@usgeothermal.com
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. 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,
including but not limited to, the results from the
exploration, production and injection well drilling at San
Emidio. 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 NYSE MKT and the TSX do not accept responsibility for the
adequacy of this release.
U.S. Geothermal Inc. 1505 Tyrell Lane, Boise, ID 83706
208-424-1027 www.usgeothermal.com
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