RENO, Nev. (AP) - Nevada Power Co. on Wednesday announced a joint ownership agreement with a subsidiary of Ormat Technologies Inc. to codevelop a geothermal energy project near Fallon.
Ormat Nevada Inc. originally was awarded a 24-megawatt net capacity power purchase agreement as part of Nevada Power Company's 2005 renewable energy plan.
Under the new joint venture, the project's ultimate size will be based on drilling tests being conducted by Ormat, but officials said it is expected to be at least 30-megawatt net.
Financial terms of the agreement were not disclosed.
"Development of renewable energy projects is a key element of our strategy and this marks a major step forward in our commitment to directly invest in such projects," said Michael Yackira, president and chief executive of Reno-based Sierra Pacific Resources, Nevada Power's parent firm.
"Ormat has a proven track record as a top geothermal developer and we are very pleased to be able to reach an agreement with them to codevelop and expand the Carson Lake project."
The geothermal site is located 70 miles east of Reno, on federal government land owned by the Bureau of Land Management and Naval
Air Station Fallon.
(Copyright 2008 by The Associated Press. All Rights Reserved.)