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Ram Power terminates PPA for Orita project in the Imperial Valley

Ram Power terminates PPA for Orita project in the Imperial Valley Drilling Rig at Orita Well #3, California (source: Ram Power)
Alexander Richter 1 Sep 2011

Ram Power terminates PPA with Southern California Edision Company for its Orita Project in Southern California, as it was not able to meet scheduled critical milestone. There will be a re-evaluation of the project when funds are available.

In a release last night developer Ram Power “announced that it has terminated its power purchase agreement (“PPA”) with the Southern California Edison Company (“SCE”) for the sale of power from its Orita Project located in Southern California. The Company terminated the PPA because it was not able to meet the critical milestone schedule outlined in the PPA for development of the Orita Project. The Company expects to have its approximately $1 million security deposit under the PPA returned by SCE in connection with the termination of the PPA.

As recently disclosed, the Company plans to reevaluate the economics and feasibility and future resource development plan for the Orita Project, but due to capital constraints, the Company has chosen to postpone completion of the testing and full evaluation of the Orita Project until additional funds are available. Once additional funds become available to the Company, further analysis and evaluation of the resource and project development potential will continue by Company personnel and independent parties GeothermEx, Inc. and Sinclair Knight Merz. This analysis and evaluation will include structural geology and geophysical examination of the field results from the drilling experiences of the three Orita Project wells drilled to date.”

Source: Company release via Marketwire