The PPA includes a short-term 3MW contract for 2014 and a long-term 10MW contract for 10 years starting in January 2017. The two contracts are estimated to supply more than 900kMWh, which is enough to power 13,600 local homes.

The Geyser project accounts for a total of 18% of state’s renewable energy capacity.

The agreement, meanwhile, was awarded following an annual Open Season Procurement process that procured 135 project proposals for California renewable energy.

MEA executive officer Dawn Weisz said the company is delighted to ink their first geothermal contract that is aimed at providing its customers with clean energy.

"We’re pleased to be partnering with an environmentally conscious organization that fosters so many local jobs and significantly supports the local economy through its numerous associated benefits," added Weisz.

With this contract, MEA currently holds 11 contracts for renewable electricity generation, including 52MW of solar, 8MW of landfill gas, and 10MW of geothermal energy.