USA, Idaho:

Neal Hot Springs Geothermal Plant Split 60/40 (News Release)

Neal Hot Springs Geothermal Plant (Courtesy U.S. Geothermal)

U.S. Geothermal Inc. of Boise, Idaho, announced yesterday that it has finalized the strategic and financial partnership with a subsidiary of Enbridge Inc. The Neal Hot Springs Geothermal Plant, located near Vale, Oregon, was developed and is being operated by USG Oregon LLC, a subsidiary of U.S. Geothermal. Enbridge, acquired an equity position in the project, which achieved Final Completion on August 1, 2013.

The Enbridge equity investment, along with a loan guarantee from the U.S. Department of Energy, funded the remaining construction costs. Total investment in the development and construction of the project by U.S. Geothermal was USD $14 million.

Following the receipt of the previously announced Section 1603 Federal Investment Tax Credit (ITC) cash grant payment, and the Oregon Business Energy Tax Credit funds, and after the receipt and disbursement of all remaining construction reserve funds, which was finalized on January 27, 2014, the final ownership interest in the Neal Hot Springs project was calculated in accordance with the terms of the partnership agreement.

Ownership interest in the project is final with 60% for U.S. Geothermal and 40% for Enbridge. As a result of the final agreement, U.S. Geothermal has received a USD $6.2 million cash distribution from the partnership.

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