U.S. Geothermal with interconnection agreement for Oregon project

Alexander Richter 13 Feb 2009

U.S. Geothermal Inc. (TSX:GTH) announced the signing of an interconnection agreement with Idaho Power Company (IPC) for its Neal Hot Springs project. The deal includes “the design and construction of a key transmission line and substation from the Neal Hot Springs project site to IPC’s nearby transmission grid. The new 10.3 mile line is being designed for 36 megawatts of transmission capacity. A recent study completed by IPC estimated the construction cost of the new connection to be $3.2 million.”, so the company.

“IPC is responsible for the design, engineering, right-of-way acquisition and construction of the new line and its associated facilities. This line is part of the development plan for the Neal Hot Springs project that is currently expected to deliver electrical power beginning in early 2011. U.S. Geothermal is completing a feasibility study and preparing project loan and technical documents required to obtain funding for development and construction of the project. The power is expected to be sold under a long term agreement that is currently under negotiations.”

The Neal Hot Springs project in eastern Oregon is currently being explored for a commercial reservoir by U.S. Geothermal.

Source: Company announcement (via msnbc)