The power purchase agreement (PPA) will provide for the delivery by Raser of approximately 10MW of renewable geothermal power for 20 years. Under the agreement, Raser plans to begin delivering electricity on or before December 15, 2008.
The Salt River Project (SRP) PPA provides for a stated selling price with annual increases over the term of the agreement. The PPA also provides for an increase in the price per MWh if the federal production tax credit for renewable power is not extended and the project does not qualify for the production tax credit in its current form.
SRP has the right of first refusal for any additional power produced by the Lightning Dock project if it is expanded. Raser intends to initially build a 10MW power plant, and then expand the facility to maximize the resource at a later date.
Brent Cook, Raser’s CEO, said: We are excited to support SRP’s commitment to expand their use of renewable energy. Our geothermal power plants are designed to provide baseload renewable energy with virtually no harmful emissions. This additional PPA is yet another milestone for Raser in meeting our goal of continuing to initiate the development of approximately 100MW per year for the next two years and 150MW of geothermal energy each year thereafter.
