BOISE, IDAHO -- (Marketwire) -- 03/25/13 -- U.S. Geothermal Inc. (TSX: GTH)(NYSE MKT: HTM), a leading renewable energy company focused on the development, production and sale of electricity from geothermal energy, announced today that its subsidiary USG Oregon LLC (the "Company") received an award letter approving its application for payment in the amount of $35,870,253 from the U.S. Department of Treasury. The cash grant is for Specified Energy Property in Lieu of Tax/Credits relating to the Neal Hot Springs geothermal power plant under Section 1603, Division B of the American Recovery and Reinvestment Act of 2009.
The Section 1603 award letter states that, pursuant to the requirements of the Balanced Budget and Emergency Deficit Control Act of 1985, as amended, payments issued under Section 1603 of the American Recovery and Reinvestment Tax Act of 2009 for specified energy property in lieu of tax credits are subject to sequestration. As a result, the amount of the award was reduced by the sequestration reduction rate of 8.7 percent resulting in a payment in the amount of $32,749,541. The proceeds of the cash grant will be used to fund $8.5 million in plant and well field cash reserves. Approximately $13.3 million of the grant is expected to pay down the outstanding project loan with the balance available for distribution to the equity partners.
The Section 1603 award letter affirms that the payment should be received in the Company bank account within seven business days.
From January 1 thru March 21, 2013, the Neal Hot Springs power plant produced and sold 42,324 megawatt hours. Electrical energy from the new power plant is being sold under the terms of a 25-year power purchase agreement with Idaho Power Company. The new plant is projected to generate up to 183,000 megawatt hours of electrical power each year. Between 30% and 40% of the Company is owned by Enbridge Inc., subject to final calculations.
About US Geothermal:
U.S. Geothermal Inc. is a leading renewable energy company focused on the development, production and sale of electricity from geothermal energy and is operating geothermal power projects at Raft River, Idaho, San Emidio, Nevada and Neal Hot Springs, Oregon. The company is developing El Ceibillo, an advanced stage, steam geothermal prospect located within a 24,710 acre (100sq km) energy rights concession area located 8.5 miles (14 km) from Guatemala City, the largest city in Central America.
Please visit our Website at: www.usgeothermal.com
The information provided in this news release may contain forward-looking statements within the definition of the Safe Harbor provisions of the US Private Securities Litigation Reform Act of 1995. These statements are based on U.S. Geothermal Inc.'s current expectations and beliefs and are subject to a number of risks and uncertainties that can cause actual results to differ materially from those described, including but not limited to, the results from the work underway to finalize the construction of Neal Hot Springs. Readers are cautioned to review the risk factors identified by the company in its filings with Canadian and US securities agencies. Forward-looking statements are based on management's expectations, beliefs and opinions on the date the statements are made. U.S. Geothermal Inc. assumes no obligation to update forward-looking statements if management's expectations, beliefs, or opinions, or other factors, should change.
The NYSE MKT and the TSX do not accept responsibility for the adequacy of this release.
U.S. Geothermal Inc.
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