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Western GeoPower Signs $500 Million Power Purchase Agreement With NCPA
Tuesday May 20, 2:06 am ET
VANCOUVER, BRITISH COLUMBIA--(MARKET WIRE)--May 20, 2008 -- Western GeoPower Corp. (CDNX:WGP.V - News) (Frankfurt:WE6F.F - News), 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.
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"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
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