Idaho company reaches deal to sell power to NV Energy

U.S. Geothermal of Idaho said Wednesday that it struck a deal to sell power to local electric utility NV Energy.

U.S. Geothermal will sell NV Energy an annual average of as much as 20 megawatts of renewable power from its San Emidio Geothermal Project in Washoe County.

The geothermal developer didn't disclose the terms of the 25-year power-purchase agreement.

The project's first phase is scheduled to come on line in the fourth quarter. A second phase is scheduled for completion in the second quarter of 2013. Additional developments could follow once U.S. Geothermal has completed drilling studies to determine production potential.

"We are pleased to extend for another 25 years the already long and successful relationship this geothermal power project has with NV Energy," U.S. Geothermal President and Chief Executive Officer Daniel Kunz said. "With Unit 1 funded and under construction, this (power-purchase agreement) is an important milestone that allows for completion of the remaining field activities required to develop additional reservoir production capacity."

The Public Utilities Commission of Nevada must approve the contract.