Western GeoPower Corp. (CDNX:WGP.V; WE6F.F) 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 megawatt-hours (MWh) per year of baseload electricity at a levelized price of $98 per MWh for 20 years.
The electricity is to be supplied from Western GeoPower’s 35 megawatt (MW) 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.
Kenneth MacLeod, President and CEO of Western GeoPower, said, "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."
Jim Pope, General Manager of NCPA, said, "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 MW 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.
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.
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.
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