Western GeoPower Signs $500 Million Power Purchase Agreement With NCPA
May 20 2008 - 2:06AM
Marketwired
VANCOUVER, BRITISH COLUMBIA (FRANKFURT: WE6.F), a renewable
energy development company, today announced the signing of a Power
Purchase Agreement ("PPA") with Northern California Power Agency
("NCPA") of Roseville, California for the supply of approximately
265,000 MWh per year of clean, renewable, baseload electricity at a
levelized price of $98 per MWh for 20 years, from Western
GeoPower's 35 MWe Unit 1 geothermal power plant scheduled to come
on line in early 2010 at The Geysers Geothermal Field in Northern
California. The PPA is not subject to any further approvals.
"The execution of this PPA reflects the tremendous spirit of
cooperation that has been created between NCPA and Western GeoPower
and is a significant milestone in the development of our Unit 1
project," said Kenneth MacLeod, President and Chief Executive
Officer of Western GeoPower. "The PPA represents approximately $26
million per year in revenue to Western GeoPower, and $520 million
over the 20-year term of the contract. The power price reflects the
increase in California's power prices as announced by the
California Public Utilities Commission in November 2007."
"Our commitment to explore and develop innovative and effective
"green power" energy programs is reflected in this agreement," said
Jim Pope, General Manager of NCPA. "By securing the geothermal
power from the Western GeoPower Unit 1, our member communities in
Northern and Central California will continue to benefit from what
we consider to be the prime source of reliable, sustainable energy
compared to the cleanest natural gas-fired sources. The addition of
this unit to our resources now expands our geothermal production
from four to five plants at The Geysers."
For over 25 years, NCPA has been operating 4 geothermal power
plants of 55 MWe each at The Geysers, located approximately 6 miles
(10 km) southeast of the Western GeoPower Unit 1 project site. NCPA
also owns and operates the steam field on which the plants are
situated, including 8 deep injection wells used to re-supply the
geothermal reservoir with water to create additional steam. This
PPA increases the amount of geothermal power used by NCPA and its
customers in Northern California by approximately 30% and will emit
approximately 4 billion less pounds of CO2 compared to even the
cleanest natural gas-fired plant over the life of the contract.
The Geysers geothermal field, located 75 miles north of San
Francisco, California, is the largest producer of geothermal
electricity in the world. Commercial geothermal power has been
generated continuously at The Geysers field since 1960, the present
generation level being about 900 MWe of clean, baseload
electricity. Western GeoPower's Unit 1 project is situated in the
south-western region of The Geysers field in Sonoma County.
About Northern California Power Agency (NCPA)
NCPA, located in Roseville, California, is a joint powers agency
that provides support for the electric utility operations of 17
member communities and districts in Northern and Central
California. Founded in 1968, NCPA owns and operates several power
plants that together comprise a 96% emission-free generation
portfolio. NCPA has been operating 4 geothermal power plants of 55
MWe each at The Geysers, 252 MWe hydroelectric plants, 125 MWe
Simple Combustion Turbine plants and 49.9 MWe Steam Injected
Combustion Turbine plants, for over 25 years.
About Western GeoPower Corp.
Western GeoPower Corp. is a renewable energy company dedicated
to the development of geothermal energy projects for the delivery
of clean, sustainable, baseload electricity generation. The Company
is developing The Western GeoPower Unit 1 geothermal power plant at
The Geysers Geothermal Field in California, United States and the
South Meager Geothermal Project in British Columbia, Canada.
On behalf of Western GeoPower Corp.
Kenneth MacLeod, President & CEO
Cautionary Note Regarding Forward-Looking Statements
Statements in this release that are forward-looking are subject
to various risks and uncertainties concerning the specific factors
identified above that reflect the Company's expectations and
projections about its future results. The Company has tried
whenever possible to identify these forward-looking statements
which include but are not limited to, words such as "anticipates,"
believes," "estimates," "expects," "plans," "intends," "potential,"
and similar expressions. Although the Company believes the
expectations expressed in such forward-looking statements are based
on reasonable assumptions, such statements are not guarantees of
future performance and actual results or developments may differ
materially from those in the forward-looking statements. Investors
are cautioned that any such statements are not guarantees of future
performance and that actual results or developments may differ
materially from those projected in the forward-looking statements.
The Company disclaims any obligation or intention to update or to
revise any forward-looking statement, whether as a result of new
information, future events or otherwise. Such information contained
herein represents management's best judgment as of the date hereof
based on information currently available.
For more information or to be put on our email list, please
contact our office: (604) 662-3338 or US/Canada Toll Free:
1-866-662-3322, email: info@geopower.ca Investor Relations:
IR@geopower.ca.
The TSX Venture Exchange does not accept responsibility for the
adequacy or accuracy of this release.
Contacts: Western GeoPower Corp. Investor Relations (604)
662-3338 or US/Canada Toll Free: 1-866-662-3322 Email:
IR@geopower.ca Website: www.geopower.ca
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