NGP Signs Amended Agreement With NV Energy To Sell All Electricity Generated At The Faulkner 1 Geothermal Plant

Vancouver, BC - Nevada Geothermal Power Inc. (NGP) recently announced that its subsidiary, NGP Blue Mountain I LLC (Blue Mountain), has signed an amendment to the existing 20-year power purchase agreement (PPA) with Nevada Power Company, doing business as NV Energy, for the sale of all energy to be produced by the expanded 'Faulkner I' power plant at Blue Mountain, Nevada. The plant, currently under construction, is expected to come on line by the end of 2009 with a total capacity of 50 megawatts (gross) or up to 40.1 MW net delivered to the grid, after accounting for the power station load.

The existing 20-year PPA was approved on February 8, 2007 by the Public Utilities Commission of Nevada (PUCN) for Blue Mountain to supply between 18.75 MW - 31.25 MW (net) of electrical power. The amended agreement stems from a 2007 request for proposal from NV Energy and it is subject to approval by the PUCN.

"The planned power plant increased in size to 50 MW (gross) based on drilling activities over the past year, having determined that the available geothermal resources can support additional capacity. As a result, NGP has negotiated a new price for the total plant output, greatly improving the economics at the Blue Mountain 'Faulkner I' geothermal project," stated Brian Fairbank, President and CEO of Nevada Geothermal Power Inc.

NGP expects to sell approximately US$530 million of electricity during the 20-year life of the amended contract. The 'Faulkner 1' project will benefit from the recent extension of the Production Tax Credit (PTC) to January 1, 2011, qualifying for a credit of US$21.00 per MWh over the full ten-year term of the PTC.

"Renewable resources are an integral part of our energy supply strategy," said Tom Fair, renewable energy executive, NV Energy. "We are currently involved in more than 30 renewable energy projects in Nevada, and the increase in size for the Faulkner I plant will be a welcome near term addition to our renewable generation mix."

SOURCE: Nevada Geothermal Power Inc.