U.S. Geothermal Inc., a renewable energy company focused on the production of electricity from geothermal energy, announced today that an interconnection agreement for the Neal Hot Springs project <in Eastern Oregon> has been signed with the Idaho Power Company.
The agreement encompasses 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.
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.
“This agreement is a critical milestone in the development of our project at Neal Hot Springs,” said Daniel Kunz, CEO and President. “Initiation of this interconnection agreement, to gain access to the transmission grid, is a critical path activity that allows us to maintain our current development schedule for the project.”
Trading Markets.com – http://www.tradingmarkets.com/.site/news/Stock%20News/2174212/