Renewable energy company US Geothermal has signed an interconnection agreement with the Idaho Power Company for the Neal Hot Springs project.
The agreement encompasses the design and construction of a key transmission line and substation from the Neal Hot Springs project site to the Idaho Power Company’s (IPC) nearby transmission grid.
According to the company, the new 10.3-mile line is being designed for 36MW of transmission capacity. A recent study completed by IPC estimated the construction cost of the new connection to be $3.2 million.
IPC is responsible for the design, engineering, right-of-way acquisition and construction of the new line and its associated facilities. This line is part of the development plan for the Neal Hot Springs project that is currently expected to deliver electrical power beginning in early 2011, said the power company.
US Geothermal said that it is completing a feasibility study and preparing project loan and technical documents required to obtain funding for development and construction of the project. The power is expected to be sold under a long-term agreement that is currently under negotiations.
U.S. Geothermal is a renewable energy development company that is operating geothermal power plants at Raft River, Idaho and at the San Emidio Desert in Nevada. The Neal Hot Springs project in eastern Oregon is being explored for a commercial reservoir. U.S. Geothermal holds, through ownership or lease, geothermal rights of lands that comprise the Raft River project in Idaho, San Emidio, Granite Ranch, and Gerlach in Nevada, and the Neal Hot Springs project in Oregon.
