Ormat to sell power from Nevada geothermal energy project

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A unit of Ormat Technologies Inc. entered into a 20-year power purchase agreement with Southern California Public Power Authority (SCPPA) to deliver electricity from its Wild Rose geothermal power plant in Mineral County, Nevada.

When Wild Rose comes online at the end of 2013, it will mark the first time renewable energy will be delivered from Nevada to California using NV Energy's One Nevada Transmission Line.

With an estimated average generation capacity of 16 MW (net), this project together with the other two projects currently under construction — one in the Imperial Valley, California and another in Kenya — are expected to bring the company's total generating capacity to about 637 MW by the end of 2013.

Ormat will sell the power to SCPPA at $99 per megawatt hour with no annual escalation. SCPPA will resell the power to the Los Angeles Department of Water and Power (LADWP) and Burbank Water and Power (BWP).

Electricity from Wild Rose geothermal power plant will be transmitted to LADWP and BWP through NV Energy's transmission system. NV Energy's system includes the new 500 kV One Nevada Transmission Line that will connect service areas in both northern and southern Nevada. The line is expected to be operational by the end of this year.

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