RENO, Nev., Aug. 3 /PRNewswire-FirstCall/ -- Sierra Pacific Resources announced today that it has signed Power Purchase Agreements (PPAs) with Ormat Technologies Inc., that will add up to 60 megawatts of new renewable generating capacity to its energy portfolio. The power will be used by its utility subsidiaries, Nevada Power Company and Sierra Pacific Power Company to serve their customers in Nevada.
The contracts specify purchases from new geothermal power plants to be constructed in northern Nevada. Each of the contracts is for 20 years. The contracts will require review and approval by the Public Utilities Commission of Nevada.
The PPAs are for new plants planned for construction by Ormat at Carson Lake, in Churchill County and Buffalo Valley, in Lander County. When completed, the two plants are expected to generate up to 60 megawatts of power.
These agreements are the eleventh and twelfth PPAs between ORMAT and Sierra Pacific Resources, and the fifth and sixth executed since the enactment of Nevada's renewable portfolio standard legislation in 2001.
"Fuel diversity is important to our company and our customers, not only to meet the state's goals for renewable energy standards, but to help stabilize energy prices during times of volatile energy markets," said Tom Fair, executive, Renewable Energy Program for the company. "Geothermal power has an impressive track record of being clean and reliable and is becoming competitively priced with conventional power generation."
About ORMAT Technologies
ORMAT Technologies, Inc. is a vertically integrated company primarily engaged in the geothermal and recovered energy power business. The Company designs, develops, builds, owns and operates geothermal power plants and also designs, develops and builds and plans to own and operate recovered energy-based power plants. Additionally, the Company designs, manufactures and sells geothermal and recovered energy power units and other power generating equipment and provides related services. ORMAT products and systems are covered by more than 70 patents. ORMAT currently operates the following geothermal power plants: in the United States -- Brady, Desert Peak, Heber, Mammoth, Ormesa, Puna and Steamboat; in the Philippines -- Leyte; in Guatemala -- Zunil; in Kenya -- Olkaria; and in Nicaragua -- Momotombo.
About Sierra Pacific Resources:
Headquartered in Nevada, Sierra Pacific Resources is a holding company whose principal subsidiaries are Nevada Power Company, the electric utility for most of southern Nevada, and Sierra Pacific Power Company, the electric utility for most of northern Nevada and the Lake Tahoe area of California. Sierra Pacific Power Company also distributes natural gas in the Reno-Sparks area of northern Nevada. Other subsidiaries include the Tuscarora Gas Pipeline Company, which owns 50 percent interest in an interstate natural gas transmission partnership.
Forward-Looking Statements
This press release contains forward-looking statements regarding the future performance of Sierra Pacific Resources and Sierra Pacific Power Company, within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are subject to a variety of risks and uncertainties that could cause actual results to differ materially from current expectations. These risks and uncertainties include, but are not limited to, ORMAT's ability to complete construction of the geothermal power plant by 2008 or at all, Sierra Pacific Power's ability to obtain required regulatory approvals for the agreement with ORMAT and Sierra Pacific Power's ability to meet its Nevada-mandated renewable requirement. Additional cautionary statements regarding other risk factors that could have an effect on the future performance of Sierra Pacific Resources and Sierra Pacific Power Company are contained in their Quarterly Reports on Form 10-Q for the quarter ended March 31, 2006, and their Annual Reports on Form 10-K for the year ended December 31, 2005, filed with the SEC. Sierra Pacific Resources and Sierra Pacific Power Company undertake no obligation to release publicly the result of any revisions to these forward-looking statements that may be made to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.
