U.S. Geothermal Inc. a leading and profitable renewable energy company, announced today that on March 6, 2016 Western GeoPower, Inc., its wholly owned subsidiary, received the fully executed Large Generator Interconnection Agreement ("LGIA") for the WGP Geysers geothermal project with the California Independent System Operator ("CAISO") and Pacific Gas & Electric ("PG&E").
The WGP Geysers project is located in Sonoma County, California, approximately 90 miles north of San Francisco and is one of four major projects under development by US Geothermal. Reservoir testing has determined that a steam resource capable of supporting a 30 MW power plant exists on the property.
"This agreement is an important milestone in our development of the WGP Geysers Project," said Dennis Gilles, CEO of U.S. Geothermal. "It allows us to gain access to the transmission grid and means that we can now offer a firm delivery date in our PPA negotiations."
The LGIA is the most critical document in the overall process for interconnecting the planned geothermal power plant to the CAISO controlled PG&E transmission system. The agreement provides for up to 35 megawatts of transmission capacity and allows for a Commercial Operations Date as early as June 1, 2018. An engineering study completed by CAISO estimated the construction cost for the new interconnection facilities to be $1.9 million. A $1 million deposit for financial security in connection with the LGIA was made February 5, 2016. In addition to the interconnection facilities covered in the LGIA, a 1.7 mile 115-kV transmission line will be required.
PG&E is responsible for the design, engineering, and construction of the new interconnection facilities. The interconnection facilities are part of the development plan for the WGP Geysers Project that is currently scheduled to begin power sales by mid-2018. U.S. Geothermal is currently having discussions with several interested parties with respect to a long term Power Purchase Agreement ("PPA") for the project and preparing to submit proposals. Once a PPA is obtained, the company will pursue funding for construction of the project. The WGP Geysers Project qualifies for the Federal 30% investment tax credit.
Source: U.S. Geothermal Inc.
Date: Mar 8, 2016