BOISE, IDAHO — (Marketwire) — 05/10/12 — U.S. Geothermal Inc. (TSX: GTH)(NYSE Amex: HTM) a leading renewable energy company focused on the development, production and sale of electricity from geothermal energy, announced today that its engineering, procurement and construction (EPC) contractor has started performance testing on the new 8.6 net megawatt San Emidio power plant. Performance testing includes guaranteed output, capacity, reliability and continuous operation tests that the plant must pass to achieve both commercial operation under the PPA and substantial completion under the EPC contract.
The plant has undergone component commissioning during the past three weeks and has operated at generation levels of up to 9 megawatts net (12 megawatts gross). During commissioning and performance testing, all power generated is sold under the PPA at a rate of $50.00 per megawatt-hour until commercial operation is achieved. Upon acceptance of commercial operation by NV Energy, the power rate will increase to $89.75 per megawatt-hour with a 1% annual escalation.
The EPC contractor is providing its services under a fixed price contract that includes financial guarantees for the original completion date and power output of the plant.
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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.
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 Amex and the TSX do not accept responsibility for the adequacy of this release.
Contacts:
U.S. Geothermal Inc.
Saf Dhillon
Investor Relations
866-687-7059
208-424-1030 (FAX)