Shares of U.S. Geothermal Inc. (
) are inching higher after the company provided an update on its
100% owned San Emidio Project near Reno, Nevada. The new power
plant output rating has now been increased from 8.6 to 9.0 net
annual average megawatts based upon results of final capacity
Since achieving commercial operation in May, the plant has been
producing and the project has been selling electrical power. The
plant has averaged an output of 9.47 net (12.47 gross) megawatts
per hour during November month-to-date. Including the completion of
performance testing, the plant has been operating continuously for
the past 31 days. The company's wholly owned subsidiary, USG Nevada
LLC, accepted operational custody of the plant on November 10. The
EPC contractor is nearing final EPC contract completion.
Electrical energy from the new power plant is being sold for
$89.75 per megawatt hour (MWH), subject to a 1% annual escalator,
under the terms of a 25-year power purchase agreement with Sierra
Pacific Power Company. Using the existing production and injection
wells, the new San Emidio plant is projected to generate an average
of approximately 75,000 MWHs of electrical power each year and
replaces an existing facility that, prior to being removed from
service, generated approximately 23,000 MWHs annually for some 20
HTM is trading at $0.32 in a 52-week range of $0.26 - $0.71.
Shares have fallen 32% in the last 12 months.