BOISE, IDAHO--(Marketwire - Nov 15, 2012) - U.S. Geothermal Inc. (GTH.TO)(NYSE MKT:HTM), a leading renewable energy development company focused on the development, production and sale of electricity from geothermal energy, announced today that its wholly owned subsidiary USG Nevada LLC received its $10.7 million cash grant from the U.S. Department of Treasury. The cash grant is for Specified Energy Property in Lieu of Tax/Credits relating to the San Emidio geothermal power plant under Section 1603, Division B of the American Recovery and Reinvestment Act of 2009. An existing $7.5 million bridge loan and its associated administrative costs have been paid in full with the balance of $2.9 million retained by the Company.
Electrical energy from the new power plant is being sold for $89.75 per megawatt hour ("MWH"), subject to a 1% annual escalator, under the terms of a 25-year power purchase agreement with Sierra Pacific Power Company. Using the existing production and injection wells, the new San Emidio plant is projected to generate an average of approximately 75,000 MWHs of electrical power each year and replaces an existing facility that, prior to being removed from service, generated approximately 23,000 MWHs annually for some 20 years.
About US Geothermal:
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, Oregon project, which is currently under start up commissioning, is the company''s third operating power project.
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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 actual results of the production and injection compared to management''s forecasts and projections at San Emidio and Neal Hot Springs. 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.