(Northern Nevada Business Weekly)
Ormat recently pulled the plug on a power purchase agreement signed in 2006 with NV Energy after delays in bringing online the proposed 30-megawatt Carson Lake geothermal plant.
Reno-based Ormat began pre-drilling at the Carson Lake site near the beginning of 2007, but the company never found the high-temperature hot water supplies it expected to drive turbines at the proposed facility.
Costs mounted as Ormat conducted additional exploration drilling in hopes of finding a lower-temperature resource.
On Dec. 22 the company announced it had terminated its power purchase agreement for the Carson Lake facility and paid NV Energy a fee of $1.7 million. The power purchase agreement was scheduled to go into effect in 2010.
