---

Service Agreement No. 05TX-11399

SERVICE AGREEMENT for POINT-TO-POINTTRANSMISSION SERVICE executedbythe UNITED
STATES OF AMERICADEPARTMENT OF ENERGY actingbyand through the BOMV-EVILLE POWER ADMINISTRATION and U.S.
GEOTHERMAL, INC.

|1. | This Service Agreement, dated as of 0 6 / 2 4 / 2 0
      0 5, is entered into, by and between the Bonneville Power
      Administration Transmission Business Line (Transmission Provider) and U.S.
      Geothermal, Inc. (Transmission Customer).                              
|-- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|   |                                                                                                                                                                                                                                                                                   
|2. | The Transmission Customer has been determined by the
      Transmission Provider to have a Completed Application for Point-to-Point
      (PTP) Transmission Service under the Transmission Provider's Open Access
      Transmission Tariff (Tariff).                            
|   |                                                                                                                                                                                                                                                                                   
|3. | The Transmission Customer has provided to the
      Transmission Provider a deposit, unless such deposit has been waived by
      the Transmission Provider, for F'irm Point- to-Point Transmission Service
      in accordance with the provisions of section 17.3 of the Tariff.
|   |                                                                                                                                                                                                                                                                                   
|4. | Service under this agreement shall commence on 0000 hours
      on June 1,2006. Service under this agreement shall terminate on such date
      as mutually agreed upon by the parties.                                                                                           
|   |                                                                                                                                                                                                                                                                                   
|5. | The Transmission Provider agrees to provide and the
      Transmission Customer agrees to take and pay for Point-to-Point
      Transmission Service in accordance with the provisions of Part I1 of the
      Tariff and this Service Agreement.                                 
|   |                                                                                                                                                                                                                                                                                   
|6. | Any notice or request made to or by either Party
      regarding this Service Agreement shall be made to the representative of
      the other Party as indicated in Exhibit B.                                                                                                   
|   |                                                                                                                                                                                                                                                                                   
|7. | The Tariff, Exhibit A(Specifications for
      Long-Term Firm Point-To-Point Transmission Service), and Exhibit B
      (Notices),are incorporated herein and made a part hereof. Capitalized
      terms not defined in this agreement are defined in the
  Tariff.              

---

|8.  | This Service Agreement shall be interpreted, construed
      and enforced in accordance with Federal law.                                                                                                                                                                     
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|    |                                                                                                                                                                                                                                                                               
|9.  | This Service Agreement shall inure to the benefit of and
      be binding upon the Parties and their respective successors and
      assigns.                                                                                                                                 
|    |                                                                                                                                                                                                                                                                               
|10. | The Transmission Customer and the Transmission Provider
      agree that provisions of section 3201(i)of Public Law 104-134 (Bonneville
      Power Administration Refinancing Act) are incorporated in their entirety
      and hereby made a part of this Service Agreement.

IN WITNESS WHEREOF, the Parties have caused this Service Agreement
  to be executed by their respective authorized officials.

|U.S. GEOTHERMAL, INC. |                        | UNITED STATES OF AMERICA
      Department of Energy
      Bonneville Power Administration
|--------------------- | ---------------------- | -----------------------------------------------------------------------------------------
|                      |                        |                                                                                          
|By:                   | /s/ Douglas J. Glaspey |                                                                                          
|                      |                        |                                                                                          
|Name:(Print/Type)     | Douglas J. Glaspey     |                                                                                          
|                      |                        |                                                                                          
|Title:                | COO & Director         |                                                                                          
|                      |                        |                                                                                          
|Date:                 | 06/24/2005             |                                                                                          

|Service Agreement No.
      05TX-11399, U.S. Geothermal, Inc. | 2
|------------------------------------------------------------- | -

---

EXHIBIT ASPECIFICATIONS FOR LONG-TERM FIRM
  POINT-TO-POINT TRANSMISSION SERVICE

TABLE 1AREQUEST FOR TRANSMISSION SERVICESThe OASIS Assignment Reference Number (ARef) is: 1424987.

|1. | TERM OF TRANSACTION                                                                                                                                                                                                                                                                                                                                                                                                            
|-- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                
|   | Start Date: at 0000 hours on June 1,2006.                                                                                                                                                                                                                                                                                                                                                                                      
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                
|   | Termination Date: at 0000 hours on June 1,2036, provided,
      however, that service under this agreement shall terminate on the earlier
      of: (i) the date mutually agreed upon by the parties; or (ii) the date
      Raft River Rural Electric Cooperative terminates the Transmission
      Provider's lease of transmission facilities under Contract No. DE-
      MS79-84BP91697, as it may be amended or replaced.
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                
|2. | DESCRIPTION OF CAPACITY AND ENERGY TO BE TRANSMITTED
      BY TRANSMISSION PROVIDER                                                                                                                                                                                                                                                                                                                                            

|DeliveringParty(Resource)l   | POR 
      Name & 
      Voltage | PORControlArea | ReservedCapacity(kW) | POD 
      Name & 
      Voltage      | PODControlArea | ReservedCapacity(kW) | Receiving
      Party
|---------------------------- | -------------------------------- | -------------- | -------------------- | ------------------------------------- | -------------- | -------------------- | ---------------------
|Transmission 
      Customer | Bridge 34.5 kV                   | IPC            | 12,000               | Minidoka 
      PP 138 kV- 
      IPC | IPC            | 12,000               | IPC                  
|Total Reserved Capacity      | 12,000                           |                |                      |                                       |               

|**3.** | POINT OF RECEIPT                                                                                                                                                                                                                                                                                                                                                          
|------ | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|       |                                                                                                                                                                                                                                                                                                                                                                           
|       | BRIDGE SUBSTATION 34.5kV                                                                                                                                                                                                                                                                                                                                                  
|       |                                                                                                                                                                                                                                                                                                                                                                           
|       | **Location**: the point in the Transmission
      Provider's Bridge Substation where the 34.5 kVfacilities of the
      Transmission Provider and Raft River Rural Electric Cooperative, Inc. are
      connected. It is the Transmission Customer's responsibility to arrange for
      the delivery of power from the generation site(s) to this Point of
      Receipt.
|       |                                                                                                                                                                                                                                                                                                                                                                           
|       | **Voltage**: 34.5 kV                                                                                                                                                                                                                                                                                                                                                      
|       |                                                                                                                                                                                                                                                                                                                                                                           
|       | **Metering**: in the Transmission Provider's
      Bridge Substation and at the Transmission Customer's generation site(s)in
      the 34.5 kVcircuits over which such electric power flows.                                                                                                                                                                              

1The Resource, POR, POD and the whole transmission
path are in the control area of Idaho Power Company (IPC), who is also the
purchaser of the power from the Resource.

|05TX-11399, U.S. Geothermal, Inc.                                           | Page 1of
      4       
|--------------------------------------------------------------------------- | -----------------------
|Exhibit A, Table 1A                                                         | Effective at 0000 hours
|Specifications for Long-Term Firm
      Point-To-Point Transmission Service | on June 1,2006         

---

|4. | POINT OF DELIVERY                                                                                                                                                                                                                                                        
|-- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|   |                                                                                                                                                                                                                                                                          
|   | MINIDOKA PP 138 kV- IPC POINT OF
      DELIVERY                                                                                                                                                                                                                          
|   |                                                                                                                                                                                                                                                                          
|   | Location:in the Government's Minidoka Power Plant
      where the 138 kV facilities of the Government and IPC are
  connected;                                                                                                                                           
|   |                                                                                                                                                                                                                                                                          
|   | Voltage:138 kV,                                                                                                                                                                                                                                                          
|   |                                                                                                                                                                                                                                                                          
|   | Metering:None. It is the responsibility of the
      Transmission Customer to assure that metering is implemented consistent
      with IPC's requirements.                                                                                                              
|   |                                                                                                                                                                                                                                                                          
|   | Exceptions:Loss returns are not required by the
      Transmission Provider at this time. It is the responsibility of the
      Transmission Customer to work with IPC as the POR and POD Control Area to
      determine the implementation of loss returns.            
|   |                                                                                                                                                                                                                                                                          
|5. | DESIGNATION OF PARTY SUBJECT TO RECIPROCAL SERVICE
      OBLIGATION                                                                                                                                                                                                      
|   | US. Geothermal, Inc.                                                                                                                                                                                                                                                     
|   |                                                                                                                                                                                                                                                                          
|6. | NAMES OF ANY INTERVENING SYSTEMS PROVIDING
      TRANSMISSION SERVICE                                                                                                                                                                                                    
|   | None.                                                                                                                                                                                                                                                                    
|   |                                                                                                                                                                                                                                                                          
|7. | SERVICE AGREEMENT CHARGES                                                                                                                                                                                                                                                
|   | Service under this Agreement will be subject to some
      combination of the charges detailed in Tables 1, 2 and 3 of this exhibit.
      (The appropriate charges for transactions will be determined in accordance
      with the terms and conditions of the Tariff.)

| | (a) | Transmission Charge                                
| | --- | ---------------------------------------------------
| |     | PTP-04 Rate Schedule or successor rate
  schedules.

| | (1) | Reservation Fee                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
| | --- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |     | Within 30 days after the Transmission Customer signs this
      Service Agreement, the first annual nonrefundable reservation fee of
      $12,336 shall be paid to the Transmission Provider. For the second and any
      subsequent reservation fees, the Transmission Provider will bill the
      Transmission Customer 30 days prior to their due date. If the deferral or
      extension of service spans two or more rate periods, the reservation fee
      will be based on the PTP Rate in effect at the time each payment is due.
      The Reservation Fee is based on the PTP Rate only and not on any of the
      Ancillary Services.
| |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
| | (2) | Short Distance Discount (SDD)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
| |     | [0.6 + (0.4 x transmission
distancel75)]                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              



|05TX-11399, U.S. Geothermal, Inc.                                           | Page 2of
      4       
|--------------------------------------------------------------------------- | -----------------------
|Exhibit A, Table 1A                                                         | Effective at 0000 hours
|Specifications for Long-Term Firm Point-To-Point Transmission
      Service | on June 1,2006         

---

Path
    Circuit Miles
    TransmissionDemand (kW)
    SDD FactorBridge - Minidoka
    40.9
    12,000
      0.8182


| | (b) | System Impact and/or Facilities Study Charge(s)                                                                              
| | --- | -----------------------------------------------------------------------------------------------------------------------------
| |     | System Impact andlor Facilities Study Charges are not
        required at this time for service under this Service Agreement.

|8. | OTHER PROVISIONS SPECIFIC TO THIS SERVICE
      AGREEMENT
|-- | ---------------------------------------------------------
|   | None.                                                    
|   |                                                          
|9. | CREDITWORTHINESSAND PREPAYMENT FOR
  SERVICE             

| | (a) | The Transmission Provider's creditworthiness business
      practices and provisions shall apply, as revised or replaced.
| | --- | -------------------------------------------------------------------------------------------------------------------------

| | (b) | The Transmission Customer shall make monthly prepayments
      of the charges specified in paragraph 9(e) of this section. The
      Transmission Customer shall make the prepayment on or before the 20th of
      each month for the subsequent month. Should the 20th fall on a weekend or
      Federal holiday, the prepayment must be made on the preceding business
      day. The first prepayment is due to the Transmission Provider no later
      than May 20,2006, for the month of June, 2006.
| | --- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (c) | The Transmission Customer shall wire transfer all
      prepayments to the Federal Reserve Bank in New York City so that they
      arrive no later than 2:00 p.m. Eastern Standard or Daylight Time,
      whichever is in effect. The Transmission Provider will verify that payment
      has been received at the Federal Reserve Bank.
| | --- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (d) | The Transmission Customer shall include the following
      information on all wire transfers under this Agreement:
| | --- | -------------------------------------------------------------------------------------------------------------------

| | (1) | ABA number - The ABA number for the Federal Reserve Bank
      in New York City is 021030004;               
| | --- | ------------------------------------------------------------------------------------------------------------
| |     |                                                                                                             
| | (2) | Receiving Bank - "TREASNYC"designates the Federal
      Reserve Bank in New York City as the receiving bank;
| |     |                                                                                                             
| | (3) | Product Code - "TREASNYCICTR";                                                                              
| |     |                                                                                                             
| | (4) | Account - Agency Location Code of 89001401directs
      the payment to the BPA Fund in the U.S. Treasury;   

__________________________________
  2The SDD is not available for transmission from secondary points of integration.
  If a primary point of integration, associated with a SDD is moved to a secondary
  point of integration, at any time during the month, the SDD shall not be applied
  for that month.

|05TX-11399, U.S. Geothermal, Inc.                                           | Page 3 of
      4      
|--------------------------------------------------------------------------- | -----------------------
|Exhibit A, Table 1A                                                         | Effective at 0000 hours
|Specifications for Long-Term Firm Point-To-Point Transmission
      Service | on June 1,2006         

---

| |  | (5) | Third Party Information - After "OBI=" the
      Transmission Customer should indicate "TRANSMISSION PREPAY" in order to
      identify the payment when it is received.
| |  | --- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (e) | The following charges are subject to prepayment: PTP Long
      Term Firm Transmission Service charges and Ancillary Service Charges. The
      monthly charge for long-term firm PTP transmission service under this
      Service Agreement shall be pursuant to the applicable PTP Rate Schedule,
      or its successor. Ancillary Service Charges shall be pursuant to the
      applicable ACS Rate Schedule, or its successor, and shall apply to the
      Ancillary Sewices in accordance with Exhibit A, Table 3.The amount
      of prepayment shall be determined using the applicable rates in effect for
      such service for the relevant month. Successors to the PTP and ACS rate
      schedules will apply to the prepayment obligations. Should the
      Transmission Customer purchase either short-term firm or nonfirm PTP
      transmission service under this Service Agreement, the Transmission
      Customer shall calculate such charges in accordance with the applicable
      rate and prepay such charges for each month as described in paragraph 9(b)
      of this section.
| | --- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
| | (f) | Prepayment pursuant to paragraph (e) above does not
      preclude the Transmission Provider from applying adjustments to such
      payments for other charges consistent with the applicable rate schedules,
      or to pass through to the Transmission Customer any additional charges not
      covered in paragraph (e) above for ancillary services which the
      Transmission Provider may be required to pay to the control area operator.
      Any such adjustments and charges are subject to payment under the
      Transmission Provider's normal transmission billing process.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
| |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
| | (g) | If the Transmission Customer fails to make any payment as
      set forth above or to pay any amount owing on its Wholesale Transmission
      Bill on or before its due date, then, the Transmission Provider shall have
      the right to suspend transmission service for the period for which
      prepayment should have been provided, and, after 60 calendar days
      following written notice by the Transmission Provider to the Transmission
      Customer, the Transmission Provider shall have the right to terminate this
      Agreement.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        



|05TX-11399, U.S. Geothermal, Inc.                                           | Page 4 of
      4      
|--------------------------------------------------------------------------- | -----------------------
|Exhibit A, Table 1A                                                         | Effective at 0000 hours
|Specifications for Long-Term Firm Point-To-Point Transmission
      Service | on June 1,2006         

---

EXHIBIT ASPECIFICATIONS FOR LONG-TERM F I B
POINT-TO-POINT TRANSMISSION SERVICE

TABLE 1BREQUEST FOR TRANSMISSION SERVICESThe OASIS Assignment Reference Number (ARef) is: 1434023.

|1. | TERM OF TRANSACTION                                                                                                                                                                                                                                                                                                                                                                                                               
|-- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|   | Start Date: at 0000 hours on December 1,2008.                                                                                                                                                                                                                                                                                                                                                                                     
|   | Termination Date: at 0000 hours on December 1,2010,
      provided, however, that service under this agreement shall terminate on
      the earlier of: (i) the date mutually agreed upon by the parties; or (ii)
      the date Raft River Rural Electric Cooperative terminates the Transmission
      Provider's lease of transmission facilities under Contract No.
      DE-MS79-84BP91697, as it may be amended or replaced.
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                   
|2. | DESCRIPTION OF CAPACITY AND ENERGY TO BE TRANSMITTED
      BY TRANSMISSION PROVIDER                                                                                                                                                                                                                                                                                                                                               

DeliveringParty(Resource)l
    PORName&
      Voltage
    PORControlArea
    ReservedCapacity(kW)
    **POD**Name& Voltage
    PODControlArea
    ReservedCapacity(kW)
    Receiving
        PartyTransmission Customer
    Bridge 34.5 kV
    IPC
    12,000
    Minidoka PP 138 kV- IPC
    IPC
    12,000
      IPCTotal Reserved Capacity
    12,000


|3. | POINT OF RECEIPT                                                                                                                                                                                                                                                                                                                                                       
|-- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|   |                                                                                                                                                                                                                                                                                                                                                                        
|   | BRIDGE SUBSTATION 34.5 kV                                                                                                                                                                                                                                                                                                                                              
|   |                                                                                                                                                                                                                                                                                                                                                                        
|   | Location:the point in the Transmission Provider's
        Bridge Substation where the 34.5 kVfacilities of the Transmission
        Provider and Raft River Rural Electric Cooperative, Inc. are connected.
        It is the Transmission Customer's responsibility to arrange for the delivery
        of power from the generation site(s) to this Point of Receipt.
|   |                                                                                                                                                                                                                                                                                                                                                                        
|   | Voltage:34.5 kV                                                                                                                                                                                                                                                                                                                                                        
|   |                                                                                                                                                                                                                                                                                                                                                                        
|   | Metering:in the Transmission Provider's Bridge
        Substation and at the Transmission Customer's generation site(s) in the
        34.5 kVcircuits over which such electric power flows.                                                                                                                                                                           

1 The Resource, POR, POD and the whole
transmission path are in the control area of Idaho Power Company (PC), who 1s
also the purchaser of the power from the Resource.

|05TX-11399, U.S. Geothermal, Inc.                                           | Page 1of
      4       
|--------------------------------------------------------------------------- | -----------------------
|Exhibit A, Table 1B                                                         | Effective at 0000 hours
|Specifications for Long-Term Firm
      Point-To-Point Transmission Service | on December 1,2008     

---

|4. | POINT OF DELIVERY                                                                                                                                                                                                                                            
|-- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|   |                                                                                                                                                                                                                                                              
|   | MINIDOKA PP 138 kV- IPC POINT OF
      DELIVERY                                                                                                                                                                                                              
|   |                                                                                                                                                                                                                                                              
|   | Location:in the Government's Minidoka Power Plant
      where the 138 kV facilities of the Government and IPC are
  connected;                                                                                                                               
|   |                                                                                                                                                                                                                                                              
|   | Voltage:138 kV,                                                                                                                                                                                                                                              
|   |                                                                                                                                                                                                                                                              
|   | Metering:None. It is the responsibility of the
      Transmission Customer to assure that metering is implemented consistent
      with IPC's requirements.                                                                                                  
|   |                                                                                                                                                                                                                                                              
|   | Exceptions:Loss returns are not required by the
      Transmission Provider at this time. It is the responsibility of the
      Transmission Customer to work with IPC as the POR and POD Control Area to
      determine the implementation of loss returns.

|5. | DESIGNATION OF PARTY SUBJECT TO RECIPROCAL SERVICE
      OBLIGATION                                                                                                                                                                                                     
|-- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|   | US. Geothermal, Inc.                                                                                                                                                                                                                                                    
|   |                                                                                                                                                                                                                                                                         
|6. | NAMES OF ANY INTERVENING SYSTEMS PROVIDING
      TRANSMISSION SERVICE                                                                                                                                                                                                   
|   | None.                                                                                                                                                                                                                                                                   
|   |                                                                                                                                                                                                                                                                         
|7. | SERVICE AGREEMENT CHARGES                                                                                                                                                                                                                                               
|   | Service under this Agreement will be subject to some
      combination of the charges detailed in Tables 1,2and 3of
      this exhibit. (The appropriate charges for transactions will be determined
      in accordance with the terms and conditions of the
  Tariff.)

| | (a) | Transmission Charge                                
| | --- | ---------------------------------------------------
| |     | PTP-04 Rate Schedule or successor rate
  schedules.
| |     |                                                    
| |     | (1)                                                
| |     |                                                    
| |     |                                                    
| |     | (2)                                                
| |     |                                                    



|05TX-11399, U.S. Geothermal, Inc.                                           | Page 2 of
      4      
|--------------------------------------------------------------------------- | -----------------------
|Exhibit A, Table 1B                                                         | Effective at 0000 hours
|Specifications for Long-Term Firm Point-To-Point Transmission
      Service | on December 1,2008     

---

Path
    Circuit Miles
    Transmission Demand (kW)
    SDD FactorBridge - Minidoka
    40.9
    12,000
      0.8182


| | (b) | System Impact and/or Facilities Study
    Charge(s)                                                                          
| | --- | -----------------------------------------------------------------------------------------------------------------------------
| |     | System Impact andlor Facilities Study Charges are not
      required at this time for service under this Service
  Agreement.

|8. | OTHER PROVISIONS SPECIFIC TO THIS SERVICE
      AGREEMENT
|-- | ---------------------------------------------------------
|   | None.                                                    
|   |                                                          
|9. | CREDITWORTHINESSAND PREPAYMENT FOR
  SERVICE             

| | (a) | The Transmission Provider's creditworthiness business
      practices and provisions shall apply, as revised or replaced.                                                                                                                                                                                                                                                                                                                                                                                            
| | --- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
| | (b) | The Transmission Customer shall make monthly prepayments
      of the charges specified in paragraph 9(e) of this section. The
      Transmission Customer shall make the prepayment on or before the 20th of
      each month for the subsequent month. Should the 20th fall on a weekend or
      Federal holiday, the prepayment must be made on the preceding business
      day. The first prepayment is due to the Transmission Provider no later
      than November 20,2008, for the month of December, 2008.
| |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
| | (c) | The Transmission Customer shall wire transfer all
      prepayments to the Federal Reserve Bank in New York City so that they
      arrive no later than 2:00 p.m. Eastern Standard or Daylight Time,
      whichever is in effect. The Transmission Provider will verify that payment
      has been received at the Federal Reserve Bank.                                                                                                                                                                          
| |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
| | (d) | The Transmission Customer shall include the following
      information on all wire transfers under this
Agreement:                                                                                                                                                                                                                                                                                                                                                                                                  

| | (1) | ABA number - The ABA number for the Federal Reserve Bank
      in New York City is 021030004;               
| | --- | ------------------------------------------------------------------------------------------------------------
| |     |                                                                                                             
| | (2) | Receiving Bank - "TREASNYC"designates the Federal
      Reserve Bank in New York City as the receiving bank;
| |     |                                                                                                             
| | (3) | Product Code - 'TREAS NYCICTR";                                                                             
| |     |                                                                                                             
| | (4) | Account - Agency Location Code of 89001401directs
      the payment to the BPA Fund in the U.S.
Treasury;   



|05TX-11399, U.S. Geothermal, Inc.                                           | Page 3 of
      4      
|--------------------------------------------------------------------------- | -----------------------
|Exhibit A, Table 1B                                                         | Effective at 0000 hours
|Specifications for Long-Term Firm Point-To-Point Transmission
      Service | on December 1,2008     

---

| | (5) | Third Party Information - After "OBI="the Transmission
      Customer should indicate "TRANSMISSIONPREPAY" in order to identify
      the payment when it is received.
| | --- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (e) | The following charges are subject to prepayment: PTP Long
      Term Firm Transmission Service charges and Ancillary Service Charges. The
      monthly charge for long-term firm PTP transmission service under this
      Service Agreement shall be pursuant to the applicable PTP Rate Schedule,
      or its successor. Ancillary Service Charges shall be pursuant to the
      applicable ACS Rate Schedule, or its successor, and shall apply to the
      Ancillary Services in accordance with Exhibit A, Table 3.The
      amount of prepayment shall be determined using the applicable rates in
      effect for such service for the relevant month. Successors to the PTP and
      ACS rate schedules will apply to the prepayment obligations. Should the
      Transmission Customer purchase either short-term firm or nonfirm PTP
      transmission service under this Service Agreement, the Transmission
      Customer shall calculate such charges in accordance with the applicable
      rate and prepay such charges for each month as described in paragraph 9(b)
      of this section..
| | --- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
| | (f) | Prepayment pursuant to paragraph (e) above does not
      preclude the Transmission Provider from applying adjustments to such
      payments for other charges consistent with the applicable rate schedules,
      or to pass through to the Transmission Customer any additional charges not
      covered in paragraph (e) above for ancillary services which the
      Transmission Provider may be required to pay to the control area operator.
      Any such adjustments and charges are subject to payment under the
      Transmission Provider's normal transmission billing process.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
| |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
| | (g) | If the Transmission Customer fails to make any payment as
      set forth above or to pay any amount owing on its Wholesale Transmission
      Bill on or before its due date, then, the Transmission Provider shall have
      the right to suspend transmission service for the period for which
      prepayment should have been provided; and, after 60 calendar days
      following written notice by the Transmission Provider to the Transmission
      Customer, the Transmission Provider shall have the right to terminate this
      Agreement.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          



|05TX-11399, U.S. Geothermal, Inc.                                           | Page 4 of
      4      
|--------------------------------------------------------------------------- | -----------------------
|Exhibit A, Table 1B                                                         | Effective at 0000 hours
|Specifications for Long-Term Firm Point-To-Point Transmission
      Service | on December 1,2008     

---

EXHIBIT ASPECIFICATIONS FOR LONG-TERM FIRM
POINT-TO-POINT TRANSMISSION SERVICE

TABLE 1CREQUEST FOR TRANSMISSION SERVICESThe OASIS Assignment Reference Number (ARef) is: 1434025.

|1. | TERM OF TRANSACTION                                                                                                                                                                                                                                                                                                                                                                                                               
|-- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|   | Start Date: at 0000 hours on December 1,2008.                                                                                                                                                                                                                                                                                                                                                                                     
|   | Termination Date: at 0000 hours on December 1,2010,
      provided, however, that service under this agreement shall terminate on
      the earlier of: (i) the date mutually agreed upon by the parties; or (ii)
      the date Raft River Rural Electric Cooperative terminates the Transmission
      Provider's lease of transmission facilities under Contract No.
      DE-MS79-84BP91697, as it may be amended or replaced.
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                   
|2. | DESCRIPTION OF CAPACITY AND ENERGY TO BE TRANSMITTED
      BY TRANSMISSION PROVIDER                                                                                                                                                                                                                                                                                                                                               

DeliveringParty(Resource)l
    PORName&
      Voltage
    PORControlArea
    ReservedCapacity(kW)
    PODName& Voltage
    PODControlArea
    ReservedCapacity(kW)
    ReceivingPartyTransmission Customer
    Bridge 34.5 kV
    IPC
    12,000
    Minidoka PP 138 kV- IPC
    IPC
    12,000
      IPCTotal Reserved capacity
    12,000


|3. | POINT OF RECEIPT                                                                                                                                                                                                                                                                                                                                            
|-- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|   |                                                                                                                                                                                                                                                                                                                                                             
|   | BRIDGE SUBSTATION 34.5 kV                                                                                                                                                                                                                                                                                                                                   
|   |                                                                                                                                                                                                                                                                                                                                                             
|   | Location:the point in the Transmission Provider's
      Bridge Substation where 1 34.5 kVfacilities of the Transmission
      Provider and Raft River Rural Electric Cooperative, Inc. are connected It
      is the Transmission Customer's responsibility to arrange for the delivery
      of power from the generation site(s) to this Point of Receipt.
|   |                                                                                                                                                                                                                                                                                                                                                             
|   | Voltage:34.5 kV                                                                                                                                                                                                                                                                                                                                             
|   |                                                                                                                                                                                                                                                                                                                                                             
|   | Metering:in the Transmission Provider's Bridge
      Substation and at the Transmission Customer's generation site(s) in the
      34.5 kVcircuits over which such electric power flows.                                                                                                                                                                    

1  The Resource, POR, POD and the whole
transmission path are in the control area of Idaho Power Company (IPC), who is
also the purchaser of the power from the Resource.

|05TX-11399, U.S. Geothermal, Inc.                                           | Page 1of
      4       
|--------------------------------------------------------------------------- | -----------------------
|Exhibit A,Table 1C                                                          | Effective at 0000 hours
|Specifications for Long-Term Firm
      Point-To-Point Transmission Service | on December 1,2008     

---

|4. | POINT OF DELIVERY                                                                                                                                                                                                                                            
|-- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|   |                                                                                                                                                                                                                                                              
|   | MINIDOKA PP 138 kV- IPC POINT OF
      DELIVERY                                                                                                                                                                                                              
|   |                                                                                                                                                                                                                                                              
|   | Location:in the Government's Minidoka Power Plant
      where the 138 kV facilities of the Government and IPC are
  connected;                                                                                                                               
|   |                                                                                                                                                                                                                                                              
|   | Voltage:138 kV,                                                                                                                                                                                                                                              
|   |                                                                                                                                                                                                                                                              
|   | Metering:None. It is the responsibility of the
      Transmission Customer to assure that metering is implemented consistent
      with IPC7srequirements.                                                                                                   
|   |                                                                                                                                                                                                                                                              
|   | Exceptions:Loss returns are not required by the
      Transmission Provider at this time. It is the responsibility of the
      Transmission Customer to work with IPC as the POR and POD Control Area to
      determine the implementation of loss returns.

|5. | DESIGNATION OF PARTY SUBJECT TO RECIPROCAL SERVICE
      OBLIGATION                                                                                                                                                                                                    
|-- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|   | U.S. Geothermal, Inc.                                                                                                                                                                                                                                                  
|   |                                                                                                                                                                                                                                                                        
|6. | NAMES OF ANY INTERVENING SYSTEMS PROVIDING
      TRANSMISSION SERVICE                                                                                                                                                                                                  
|   | None.                                                                                                                                                                                                                                                                  
|   |                                                                                                                                                                                                                                                                        
|7. | SERVICE AGREEMENT CHARGES                                                                                                                                                                                                                                              
|   | Service under this Agreement will be subject to some
      combination of the charges detailed in Tables 1,2and 3 of this exhibit.
      (The appropriate charges for transactions will be determined in accordance
      with the terms and conditions of the Tariff.)

| | (a) | Transmission Charge                                
| | --- | ---------------------------------------------------
| |     | PTP-04 Rate Schedule or successor rate
  schedules.

| | (1) | Reservation Fee                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
| | --- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |     | Within 30 days after the Transmission Customer signs this
      Service Agreement, the first annual nonrefundable reservation fee of
      $12,336 shall be paid to the Transmission Provider. For the second and any
      subsequent reservation fees, the Transmission Provider will bill the
      Transmission Customer 30 days prior to their due date. If the deferral or
      extension of service spans two or more rate periods, the reservation fee
      will be based on the PTP Rate in effect at the time each payment is due.
      The Reservation Fee is based on the PTP Rate only and not on any of the
      Ancillary Services.
| |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
| | (2) | Short Distance Discount (SDD)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
| |     | [0.6 + (0.4 x transmission
distance/75)]                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              



|05TX-11399, U.S. Geothermal, Inc.                                           | Page 2 of
      4      
|--------------------------------------------------------------------------- | -----------------------
|Exhibit A,Table 1C                                                          | Effective at 0000 hours
|Specifications for Long-Term Firm Point-To-Point Transmission
      Service | on December 1,2008     

---

Path
    CircuitMiles
    TransmissionDemand (kW)
    SDD FactorBridge - Minidoka
    40.9
    12,000
    0.8182


| | (b) | System Impact andlor Facilities Study
    Charge(s)                                                                          
| | --- | -----------------------------------------------------------------------------------------------------------------------------
| |     | System Impact andlor Facilities Study Charges are not
      required at this time for service under this Service
  Agreement.

|8. | OTHER PROVISIONS SPECIFIC TO THIS SERVICE
      AGREEMENT
|-- | ---------------------------------------------------------
|   | None.                                                    
|   |                                                          
|9. | CREDITWORTHINESS AND PREPAYMENT FOR
  SERVICE            

| | (a) | The Transmission Provider's creditworthiness business
      practices and provisions shall apply, as revised or replaced.
| | --- | -------------------------------------------------------------------------------------------------------------------------

| | (b) | The Transmission Customer shall make monthly prepayments
      of the charges specified in paragraph 9(e) of this section. The
      Transmission Customer shall make the prepayment on or before the 20th of
      each month for the subsequent month. Should the 20th fall on a weekend or
      Federal holiday, the prepayment must be made on the preceding business
      day. The first prepayment is due to the Transmission Provider no later
      than November 20,2008, for the month of December, 2008.
| | --- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (c) | The Transmission Customer shall wire transfer all
      prepayments to the Federal Reserve Bank in New York City so that they
      arrive no later than 2:00 p.m. Eastern Standard or Daylight Time,
      whichever is in effect. The Transmission Provider will verify that payment
      has been received at the Federal Reserve Bank.
| | --- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (d) | The Transmission Customer shall include the
      following information on all wire transfers under this Agreement:
| | --- | -------------------------------------------------------------------------------------------------------------------

| | (1) | ABA number - The ABA number for the Federal Reserve Bank
      in New York City is 021030004;               
| | --- | ------------------------------------------------------------------------------------------------------------
| |     |                                                                                                             
| | (2) | Receiving Bank - "TREASNYC"designates the Federal
      Reserve Bank in New York City as the receiving bank,
| |     |                                                                                                             
| | (3) | Product Code - 'TREAS NYC/CTR1';                                                                            
| |     |                                                                                                             
| | (4) | Account - Agency Location Code of 89001401 directs the
      payment to the BPA Fund in the US. Treasury;   

____________________________________
  2The SDD is not available for transmission from secondary points of integration.
  If a primary point of integration, associated with a SDD is moved to a secondary
  point of integration, at any time during the month, the SDD shall not be applied
  for that month.

|05TX-11399, U.S. Geothermal, Inc.                                           | Page 3 of
      4      
|--------------------------------------------------------------------------- | -----------------------
|Exhibit A,Table 1C                                                          | Effective at 0000 hours
|Specifications for Long-Term Firm Point-To-Point Transmission
      Service | on December 1,2008     

---

| | (5) | Third Party Information - After "OBI=" the Transmission
      Customer should indicate "TRANSMISSION PREPAY" in order to identify the
      payment when it is received.
| | --- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (e) | The following charges are subject to prepayment: PTP Long
      Term Firm Transmission Service charges and Ancillary Service Charges. The
      monthly charge for long-term firm PTP transmission service under this
      Service Agreement shall be pursuant to the applicable PTP Rate Schedule,
      or its successor. Ancillary Service Charges shall be pursuant to the
      applicable ACS Rate Schedule, or its successor, and shall apply to the
      Ancillary Services in accordance with Exhibit A,Table 3.The amount of prepayment shall be determined using the applicable
      rates in effect for such service for the relevant month. Successors to the
      PTP and ACS rate schedules will apply to the prepayment obligations.
      Should the Transmission Customer purchase either short-term firm or
      nonfirm PTP transmission service under this Service Agreement, the
      Transmission Customer shall calculate such charges in accordance with the
      applicable rate and prepay such charges for each month as described in
      paragraph 9(b) of this section.
| | --- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
| | (f) | Prepayment pursuant to paragraph (e) above does not
      preclude the Transmission Provider from applying adjustments to such
      payments for other charges consistent with the applicable rate schedules,
      or to pass through to the Transmission Customer any additional charges not
      covered in paragraph (e) above for ancillary services which the
      Transmission Provider may be required to pay to the control area operator.
      Any such adjustments and charges are subject to payment under the
      Transmission Provider's normal transmission billing process.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
| |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
| | (g) | If the Transmission Customer fails to make any payment as
      set forth above or to pay any amount owing on its Wholesale Transmission
      Bill on or before its due date, then, the Transmission Provider shall have
      the right to suspend transmission service for the period for which
      prepayment should have been provided; and, after 60 calendar days
      following written notice by the Transmission Provider to the Transmission
      Customer, the Transmission Provider shall have the right to terminate this
      Agreement.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  



|05TX-11399, U.S. Geothermal, Inc.                                           | Page 4 of
      4      
|--------------------------------------------------------------------------- | -----------------------
|Exhibit A,Table 1C                                                          | Effective at 0000 hours
|Specifications for Long-Term Firm Point-To-Point Transmission
      Service | on December 1,2008     

---

EXHIBIT ASPECIFICATIONS FOR LONG-TERM FIRM
POINT-TO-POINT TRANSMISSION SERVICE

TABLE2DIRECT ASSIGNMENTANDUSE-OF-FACILITIES CHARGES

Facilities Charges are not required at this time for the
service associated with Exhibit A,Tables lA, lB, and 1C.







|05TX-11399, U.S.
      Geothermal, Inc.                                    | Page 1of
      1       
|-------------------------------------------------------------------------- | -----------------------
|Exhibit A,Table 2                                                          | Effective at 0000 hours
|Specifications for Long~TermFirm Point-To-Point
      Transmission Service | on June 1,2006         

---

EXHIBIT ASPECIFICATIONS FOR LONG-TERM FIRM
POINT-TO-POINT TRANSMISSION SERVICE

TABLE3ANCILLARY SERVICE CHARGES

This Table 3 is subject to the ACS-04 Rate Schedule or
successor rate schedules. For transmission service that requires use of the
Transmission Provider's control area, the first two services below must be
purchased from the Transmission Provider, and the Transmission Customer must
make arrangements for the provision of other ancillary services in compliance
with the Transmission Provider's Open Access Transmission Tariff (Tariff), as it
may be amended. To the extent that ancillary or control area services are
provided by a control area operator other than the Transmission Provider, or by
any entity other than the Transmission Provider, and such services are billed to
the Transmission Provider, the Transmission Provider will pass on such costs to
the Transmission Customer, and the Transmission Customer agrees to pay such
charges. The information specified below is applicable only to service provided
pursuant to Tables lA, lB, and lC, which are included in Exhibit A at the time
this Contract 05TX-11399 is originally executed. If the Transmission Customer
requests additional service not specified in such tables at the time this
contract is originally executed, or if such original service is revised or
assigned, whether or not such service is documented in this Service Agreement,
the provisions of the Tariff, as it may be amended or replaced, shall determine
the applicability of the ancillary services described therein to the services
requested.

Provided By
    **Contract
  No.**1.
    SCHEDULING, SYSTEM CONTROL
      AND DISPATCH (See above)
    As determined by control area
      operator2.
    REACTIVE SUPPLY AND
      VOLTAGE CONTROL (See above)
    As determined by control area
      operator**3.**
    REGULATION&
      FREQUENCY RESPONSE (Only for customers serving load in
      Transmission Provider's Control Area)
    Not Applicable**4.**
    ENERGY IMBALANCE SERVICE
      (Only for customers serving load in Transmission Provider's
      Control Area who do not receive requirements power service from BPA)
    Not Applicable**5.**
    OPERATING RESERVE-
      SPINNING RESERVE
      As Applicable6.
    OPERATING RESERVE-
      SUPPLEMENTAL RESERVE
    As Applicable


|05TX-11399, U.S. Geothermal, Inc. | Page 1of
      1       
|--------------------------------- | -----------------------
|Exhibit B                         | Effective at 0000 hours
|Notices                           | on June 1,2006         

---

EXHIBIT B NOTICES

|1. | NOTICES RELATING TO PROVISIONS OF THE SERVICE
      AGREEMENT                                                                                                                                                                                                                                            
|-- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|   | Any notice or other communication related to this Service
      Agreement, other than notices of an operating nature (section 2 below),
      shall be in writing and shall be deemed to have been received if delivered
      in person, First Class mail, by telefax or sent by overnight
    delivery.

| | If to the Transmission Customer: | If to the Transmission Provider:                 
| | -------------------------------- | -------------------------------------------------
| |                                  |                                                  
| | U.S. Geothermal, Inc.            | Bonneville Power Administration                  
| | 1509 Tyrell Lane, Suite B        | P.O. Box 61409                                   
| | Boise, ID 83706                  | Vancouver, WA 98666-1409                         
| | Attention: Mr. Robert A. Cline,  | Attention:   Transmission Account
      Executive
| | Vice President, Engineering      | for U.S. Geothermal - TMIOPP2                    
| | Phone: (208) 424-1027            | Phone:  (360) 619-6010                           
| | Fax: (208) 424-1030              | Fax:       (360)
      619-6940                  
| |                                  |                                                  
| |                                  | If by Overnight Delivery Services:               
| |                                  | Bonneville Power Administration                  
| |                                  | 8100 NE Parkway Drive - Suite 50                 
| |                                  | Vancouver, WA 98662                              
| |                                  | Attention:   Transmission Account
      Executive
| |                                  | for U.S. Geothermal - TMIOPP2                    

|2. | NOTICES OF AN OPERATING NATURE                                                                                                                                                                                                           
|-- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|   | Any notice, request, or demand of an operating nature by
      the Transmission Provider or the Transmission Customer shall be made
      either orally or in writing by telefax or sent by First Class mail or
      overnight delivery.

| | If to the Transmission Customer: | If to the Transmission Provider:           
| | -------------------------------- | -------------------------------------------
| |                                  |                                            
| | U.S. Geothermal, Inc.            | Bonneville Power Administration            
| | 1509 Tyrell Lane, Suite B        | P.O. Box 491                               
| | Boise, ID 83706                  | Vancouver, WA 98666-0491                   
| | Attention: Mr. Robert A. Cline,  | Attention: Real-Time Scheduling Desk       
| | Vice President, Engineering      | EMERGENCY ONLY                             
| | Phone: (208) 424-1027            | Phone: Contact Idaho Power Company         
| | Fax:      (208) 424-1030         | Fax:      Contact
      Idaho Power Company

|3. | SCHEDULING AGENT                                                                  
|-- | ----------------------------------------------------------------------------------
|   | Not applicable for service as specified in Exhibit A,
      Tables lA, lB, and 1C.

|05TX-11399, U.S. Geothermal, Inc. | Page 1of
      1       
|--------------------------------- | -----------------------
|Exhibit B                         | Effective at 0000 hours
|Notices                           | on June 1,2006         

---