A geothermal plant near Gerlach is producing at a higher-than-expected level, its owner said last week.
U.S. Geothermal Inc. of Boise said it boosted the output rating of its San Emidio project to nine megawatts. The plant previously was rated at 8.6 megawatts.
Electricity produced by the plan is sold for $89.75 per megawatt hour to Sierra Pacific Power Company, U.S. Geothermal said. The 25-year agreement with the utility calls for a 1 percent annual escalator.
The plant, which came online in May, is expected to produce about 75,000 megawatt hours of power a year. That translates into revenues of $6.7 million a year at the current pricing.
Daniel Kunz, chief executive officer of U.S. Geothermal Inc., said the company expects to close on long-term financing of the project during the fourth quarter. Construction financing was provided by SAIC Constructors, a subsidiary of Science Applications International Corporation that built the plant.
The new plant replaces an existing a 3.6-megawatt plant that had operated for about 20 years at the site.
