The delivery of the power is slated to start in December of this year, and there are two separate agreements each for up to 11 MW. The 20 year power purchase agreement allows Raser to generate a healthy cash flow for the future. The City of Anaheim has also built into the agreement terms under which the price for the power will go up and the “wheeling costs” or costs of transmitting the power to the cities grid will be paid for by them.
Raser currently has several negotiations for similar agreements under way, this marks the first time though one has sucessfully been completed for the company. The others are also with utilites and local governments. There is a total potential of 120 MW of power being sold , and it is hoped that the agreements can be completed in the coming year and a half.
'We applaud the vision and commitment of the City of Anaheim, its residents and businesses to the development and use of renewable energy,' stated Brent M. Cook, Raser's Chief Executive Officer. 'These geothermal power plants are designed to provide baseload renewable energy with virtually no harmful emissions for a combined 18,000 homes. Receiving these initial PPAs are key milestones for Raser Technologies and are important pieces of our corporate strategy.'
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