Nevada Geothermal Power Inc.
OTC Bulletin Board : NGLPF

Nevada Geothermal Power Inc.

November 24, 2008 09:15 ET

Nevada Geothermal Power Inc. Signs Amended Power Purchase Agreement With NV Energy to Sell All Electricity Generated at the 50 MW Faulkner 1 Geothermal Plant

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Nov. 24, 2008) - Nevada Geothermal Power Inc. (NGP) (TSX VENTURE:NGP)(OTCBB:NGLPF) today announced that its subsidiary, NGP Blue Mountain I LLC (Blue Mountain), has signed an amendment to the existing 20-year power purchase agreement (PPA) with Nevada Power Company, doing business as NV Energy, for the sale of all energy to be produced by the expanded 'Faulkner I' power plant at Blue Mountain, Nevada. The plant, currently under construction, is expected to come on line by the end of 2009 with a total capacity of 50 megawatts (gross) or up to 40.1 MW net delivered to the grid, after accounting for the power station load.

The existing 20-year PPA was approved on February 8, 2007 by the Public Utilities Commission of Nevada (PUCN) for Blue Mountain to supply between 18.75 MW - 31.25 MW (net) of electrical power. The amended agreement stems from a 2007 request for proposal from NV Energy and it is subject to approval by the PUCN.

"The planned power plant increased in size to 50 MW (gross) based on drilling activities over the past year, having determined that the available geothermal resources can support additional capacity. As a result, NGP has negotiated a new price for the total plant output, greatly improving the economics at the Blue Mountain 'Faulkner I' geothermal project," stated Brian Fairbank, President and CEO of Nevada Geothermal Power Inc.

NGP expects to sell approximately US$530 million of electricity during the 20-year life of the amended contract. The 'Faulkner 1' project will benefit from the recent extension of the Production Tax Credit (PTC) to January 1, 2011, qualifying for a credit of US$21.00 per MWh over the full ten-year term of the PTC.

"Renewable resources are an integral part of our energy supply strategy," said Tom Fair, renewable energy executive, NV Energy. "We are currently involved in more than 30 renewable energy projects in Nevada, and the increase in size for the Faulkner I plant will be a welcome near term addition to our renewable generation mix."

About NV Energy: Headquartered in Nevada, NV Energy, Inc. is a holding company whose principal subsidiaries are Nevada Power Company, the electric utility for most of southern Nevada, and Sierra Pacific Power Company, the electric utility for most of northern Nevada and the Lake Tahoe area of California. Both subsidiaries are doing business as NV Energy. NV Energy also distributes natural gas in the Reno-Sparks area of northern Nevada.

About Nevada Geothermal Power Inc.: Nevada Geothermal Power Inc. is a renewable energy company developing geothermal projects in the United States to provide electrical energy that is clean, efficient and sustainable. NGP is committed to the geothermal industry and currently owns a 100% leasehold interest in four properties: Blue Mountain, Pumpernickel, Black Warrior, all located in Nevada and Crump Geyser in Oregon. These properties are at different levels of exploration and development. NGP estimates a potential of approximately 200 MW from the current leaseholds.

Nevada Geothermal Power Inc.

Brian D. Fairbank, P. Eng., President & CEO

This Press Release contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. We have tried, whenever possible, to identify these forward-looking statements using words such as "anticipates", "believes", "estimates", "expects", "plans", "intends", "potential", and similar expressions. These statements reflect our current belief and are based upon currently available information. Accordingly, such forward-looking statements involve known and unknown risks, uncertainties and other factors which could cause the Company's actual results, performance or achievements to differ materially from those expressed in or implied by such statements. We undertake no obligation to update or advise in the event of any change, addition, or alteration to the information catered in this Press Release including such forward-looking statements.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • Nevada Geothermal Power Inc.
    Shelley Kirk
    Investor Inquiries
    (604) 638-8784 or Toll Free: 1-866-688-0808 X118