The company said that California Public Utilities Commission approval was not received within the time-frame stipulated in the power purchase agreement (PPA).

The Geysers geothermal field is located 75 miles north of San Francisco, California, US. Commercial geothermal power has been generated continuously at The Geysers field since 1960, the present generation level being about 900MW of clean, baseload electricity, the company said. Western GeoPower’s Unit 1 project is situated in the southwestern region of The Geysers field in Sonoma County, California.

Kenneth MacLeod, president and CEO of Western GeoPower, said: The termination of the PPA will not affect the projected start of commercial operations in early 2010 for the Western GeoPower Unit 1 power plant.