Nevada-based geothermal developer Ram Power terminates PPA with Southern California Edison for Orita Project in Southern California as it was unable to meet development schedule; Ram Power re-evaluating Orita plans, expects SCE to return US$1M deposit
September 1, 2011
– Ram Power, Corp. (TSX: RPG) ("Ram Power" or the "Company"), a renewable energy company focused on the development, production and sale of electricity from geothermal energy, announced today that it has terminated its power purchase agreement ("PPA") with the Southern California Edison Company ("SCE") for the sale of power from its Orita Project located in Southern California. The Company terminated the PPA because it was not able to meet the critical milestone schedule outlined in the PPA for development of the Orita Project. The Company expects to have its approximately $1 million security deposit under the PPA returned by SCE in connection with the termination of the PPA.
As recently disclosed, the Company plans to reevaluate the economics and feasibility and future resource development plan for the Orita Project, but due to capital constraints, the Company has chosen to postpone completion of the testing and full evaluation of the Orita Project until additional funds are available. Once additional funds become available to the Company, further analysis and evaluation of the resource and project development potential will continue by Company personnel and independent parties GeothermEx, Inc. and Sinclair Knight Merz. This analysis and evaluation will include structural geology and geophysical examination of the field results from the drilling experiences of the three Orita Project wells drilled to date.
About Ram Power
Ram Power is a renewable energy company based in Reno, Nevada, engaged in the business of acquiring, exploring, developing, and operating geothermal properties. Ram Power has an interest in geothermal projects, primarily in the United States, Canada, and Latin America.