Sierra Pacific Resources and ORMAT Technologies Sign 20-Year Power Purchase Agreement for 20 MW of Geothermal Power
09 Maio 2006 - 3:25PM
PR Newswire (US)
New Geothermal Plant to Be Constructed by ORMAT at Its Steamboat
Geothermal Area in Nevada RENO, Nev., May 9 /PRNewswire-FirstCall/
-- Sierra Pacific Resources (NYSE:SRP) and ORMAT Technologies Inc.
(NYSE:ORA) jointly announced today that Sierra Pacific Power
Company, Sierra Pacific Resources northern Nevada utility, and ORNI
14 LLC, a subsidiary of ORMAT Nevada, Inc., have signed a 20-year
Power Purchase Agreement (PPA) for the sale of energy to be
produced from Galena No. 3, a new geothermal power plant to be
built in northern Nevada. Under the new agreement, the Galena No. 3
Geothermal Power Project will be integrated into ORMAT's existing
Steamboat Geothermal Complex in Washoe County, Nevada. The new
plant is expected to increase the total output supplied from the
Steamboat Known Geothermal Resource Area (KGRA) to Sierra Pacific
Power Company by between 15 and 25 megawatts (MW), bringing the
total output of the Steamboat KGRA to approximately 90 MW. Sierra
Pacific Power said the PPA is subject to approval by the Public
Utilities Commission of Nevada and will be submitted to the agency
this month. Galena No. 3 is projected to come on line in 2008. This
agreement marks the 10th PPA between ORMAT and Sierra Pacific
Power, and the fourth executed since the enactment of Nevada's
renewable portfolio standard legislation in 2001. ORMAT is also in
negotiations on two additional geothermal PPAs for projects on
Sierra Pacific's "short list" as part of Sierra Pacific's 2005
Request for Proposals for Renewable Energy. Walter Higgins,
chairman and chief executive officer of Sierra Pacific Resources,
said, "This agreement is further proof of our company's dedication
to renewable power resources and our continuing confidence in ORMAT
as a leader and a pioneer in the geothermal industry in Nevada.
ORMAT is recognized worldwide for developing much-needed renewable
energy resources. Nevada's renewable standards and goals are among
the most ambitious in the nation. Sierra Pacific Resources can and
will achieve the state's goals by working closely with companies
such as ORMAT and others who follow ORMAT's lead. ORMAT already has
proven to be one of the best companies at building and operating
geothermal projects." Lucien Bronicki, chairman of ORMAT said,
"We're proud to enter into this tenth Power Purchase Agreement in
our twentieth year of collaboration with Sierra Pacific. This
collaboration in the development of Nevada's geothermal potential,
estimated at 1500 MW by the Western Governor's Association task
force, will help to make Nevada a leader in geothermal
technologies. Sierra Pacific should be commended for entering into
agreements to purchase power produced by renewable sources such as
geothermal energy. Without these agreements, financing and building
these plants would be impossible." The Galena No. 3 project will be
an air-cooled binary power plant that re-injects 100 percent of all
geothermal fluid produced, while consuming no water or chemicals.
Additionally, as geothermal power works continuously, the Galena
No. 3 plant will provide base load power, 24 hours per day, 7 days
per week. ORMAT said that, when complete, the total output of the
Steamboat KGRA will be sufficient to power 90,000 residences in the
Reno-Sparks area. About ORMAT Technologies ORMAT Technologies, Inc.
is a vertically integrated company primarily engaged in the
geothermal and recovered energy power business. The Company
designs, develops, builds, owns and operates geothermal power
plants and also designs, develops and builds and plans to own and
operate recovered energy-based power plants. Additionally, the
Company designs, manufactures and sells geothermal and recovered
energy power units and other power generating equipment and
provides related services. ORMAT products and systems are covered
by more than 70 patents. ORMAT currently operates the following
geothermal power plants: in the United States -- Brady, Desert
Peak, Heber, Mammoth, Ormesa, Puna and Steamboat; in the
Philippines -- Leyte; in Guatemala -- Zunil; in Kenya -- Olkaria;
and in Nicaragua -- Momotombo. Safe Harbor Statement Information
provided in this press release may contain statements relating to
current expectations, estimates, forecasts and projections about
future events that are "forward-looking statements" as defined in
the Private Securities Litigation Reform Act of 1995. These
forward-looking statements generally relate to ORMAT's plans,
objectives and expectations for future operations and are based
upon management's current estimates and projections of future
results or trends. Actual future results may differ materially from
those projected as a result of certain risks and uncertainties. For
a discussion of such risks and uncertainties, see "Risk Factors" as
described in the Company's Annual Report on Form 10-K filed with
the Securities and Exchange Commission on March 28, 2006 and the
Prospectus Supplement filed with the Securities and Exchange
Commission on April 5, 2006. These forward-looking statements are
made only as of the date hereof, and we undertake no obligation to
update or revise the forward-looking statements, whether as a
result of new information, future events or otherwise. About Sierra
Pacific Power Company Headquartered in Reno, Nevada, Sierra Pacific
Power Company is the principal utility for most of northern Nevada
and the Lake Tahoe area of California. The company serves
approximately 300,000 electric customers in northern Nevada and
45,000 electric customers in California. It is a wholly owned
subsidiary of Sierra Pacific Resources, which also is the holding
company for Nevada Power Company, the electric utility for southern
Nevada. Sierra Pacific Power also distributes natural gas to
approximately 135,000 customers in the Reno-Sparks area of northern
Nevada. Other subsidiaries of Sierra Pacific Resources include the
Tuscarora Gas Pipeline Company, which owns 50 percent interest in
an interstate natural gas transmission partnership. Forward-Looking
Statements: This press release contains forward-looking statements
regarding the future performance of Sierra Pacific Resources and
Sierra Pacific Power Company, within the meaning of the Private
Securities Litigation Reform Act of 1995. These statements are
subject to a variety of risks and uncertainties that could cause
actual results to differ materially from current expectations.
These risks and uncertainties include, but are not limited to,
ORMAT's ability to complete construction of the geothermal power
plant by 2008 or at all, Sierra Pacific Power's ability to obtain
required regulatory approvals for the agreement with ORMAT and
Sierra Pacific Power's ability to meet its Nevada-mandated
renewable requirement. Additional cautionary statements regarding
other risk factors that could have an effect on the future
performance of Sierra Pacific Resources and Sierra Pacific Power
Company are contained in their Quarterly Reports on Form 10-Q for
the quarter ended March 31, 2006, and their Annual Reports on Form
10-K for the year ended December 31, 2005, filed with the SEC.
Sierra Pacific Resources and Sierra Pacific Power Company undertake
no obligation to release publicly the result of any revisions to
these forward-looking statements that may be made to reflect events
or circumstances after the date hereof or to reflect the occurrence
of unanticipated events. DATASOURCE: Sierra Pacific Resources;
ORMAT Technologies Inc. CONTACT: Dita Bronicki, CEO and President
of ORMAT Technologies Inc., +1-775-356-9029, ; or Media, Faye I.
Andersen, +1-775-834-4822, or Analysts, Britta Carlson,
+1-702-367-5624, both of Sierra Pacific
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