Nevada Geothermal Power has signed a large generator interconnection agreement with Sierra Pacific Power Company. The agreement covers up to 75MW of new electric generation in two phases from the Blue Mountain geothermal resource.

The agreement was the culmination of Sierra Pacific Power Company’s (SPPC) engineering studies, which determined that interconnection to its electrical transmission grid was feasible, and the subsequent contract negotiations with Nevada Geothermal Power (NGP).

The agreement costs and schedule are in line with NGP’s plans for the Blue Mountain project and allows NGP to continue with development of phase one and planning of phase two power projects.

Brian Fairbank, president and CEO of NGP, said: Completion of this agreement meets a critical milestone in the development of the 35MW Blue Mountain, Faulkner I project in Nevada. This agreement allows us to connect NGP’s Blue Mountain generating facilities to the utilities electric grid and identifies responsibilities, costs and schedules for the interconnection. Sized at 75MW, the agreement also secures the access for future build out phases at our Blue Mountain site.

In addition, NGP has submitted a power bid for a phase two 24MW geothermal plant at Blue Mountain to SPCC and Nevada Power in response to a request for proposal issued on September 28, 2007. The transmission line to be build for the Faulkner 1 power plant will have enough capacity to accommodate phase two power plant output.