Raser Technologies, Inc. (NYSE Arca: RZ) announced today that the City of Anaheim, California has approved power purchase agreements (PPAs) for two of Raser’s planned geothermal power plants.
Each agreement is for up to 11 megawatts (MW), or enough electricity to power approximately 9,000 homes, of geothermal renewable power for 20 years. Under the agreement, Raser will aim to begin delivery of electricity by December 15, 2008.
The PPAs provide for a stated selling price with annual increases over the term of the agreement. Under the agreements, Anaheim will also pay for the "wheeling costs," or cost for transmission of the electricity from the power plants to Anaheim.
These are the first two completed PPAs by the environmentally-focused, Utah-based company. Raser said it is currently in various stages of negotiations with several utilities and other municipalities with respect to other agreements to purchase an additional 120 MW of power.
Brent M. Cook, Raser’s CEO said, "These geothermal power plants are designed to provide baseload renewable energy with virtually no harmful emissions for a combined 18,000 homes. Receiving these initial PPAs are key milestones for Raser Technologies and are important pieces of our corporate strategy."
About Raser Technologies
Raser is an environmentally-focused technology licensing and development company operating in two business segments. Raser’s Power Systems segment is seeking to develop clean, renewable geothermal electric power plants and bottom-cycling operations, incorporating licensed heat transfer technology and Raser’s SymetronTM technology developed internally by its Transportation and Industrial Technology segment. Raser’s Transportation and Industrial Technology segment focuses on using Raser’s SymetronTM technology to improve the efficiency of electric motors and other applications.
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