---

Service Agreement No. 05TX-11399

SERVICE AGREEMENT 
  for 
  POINT-TO-POINTTRANSMISSION SERVICE
  executed by the 
  UNITED STATES OF AMERICADEPARTMENT OF ENERGY 
  acting by and through the 
  BONNEVILLE POWER ADMINISTRATION 
  and
  U.S. GEOTHERMAL, INC.

|**1.** | This Service Agreement, dated as of _______________ , 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 Firm 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 II 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
|--------------------- |  | ------------------------
|                      |  |                         
|                      |  |                         
|                      |  |                         
|By:                   |  |                         
|                      |  |                         
|Name:                 |  |                         
|(Print/Type)          |  | (Print/Type)            
|                      |  |                         
|Title:                |  |                         
|                      |  |                         
|Date:                 |  |                         

|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 SERVICES
  The 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**                                                                                                                                                                                                                                                                                                                                                 
|      

|Delivering Party (Resource)1 | POR Name & Voltage | POR Control Area | Reserved Capacity (kW) | POD Name & Voltage                 | POD Control Area | Reserved Capacity (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 34.5 kV**                                                                                                                                                                                                                                                                                                                                        
|  
|   | **Location**: the point in the Transmission Provider’s
      Bridge Substation where the 34.5 kV facilities 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 kV circuits 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
      1 of 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**
        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, 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)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
|       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
|       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          

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

---

| |  | (2) | Short Distance Discount (SDD)
      [0.6 + (0.4 x transmission distance/75)]
| |  | --- | ----------------------------------------------------------------------------

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

|   | (b)                                                 | System Impact and/or Facilities Study Charge(s)                                                                                                                                                                                                                                                                                                                                                                                                                                                           
|-- | --------------------------------------------------- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|   |                                                     | System Impact and/or 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 20thof each
      month for the subsequent month. Should the 20thfall 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)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|  
|   |                                                     | (2)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|  
|   |                                                     | (3)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       

|2 | The 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        

---

| |     | (4)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              | Account – Agency Location Code of 89001401 directs the payment
      to the BPA Fund in the U.S. Treasury;                                                              
| | --- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|
| |     | (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 1A                                                         | Effective at 0000 hours
|Specifications for Long-Term Firm Point-To-Point
      Transmission Service | on June 1, 2006        

---

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

TABLE 1BREQUEST FOR TRANSMISSION SERVICES
  The 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**                                                                                                                                                                                                                                                                                                                                            

|Delivering Party (Resource)1 | POR Name & Voltage | POR Control Area | Reserved Capacity (kW) | POD Name & Voltage                  | POD Control Area | Reserved Capacity (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 34.5 kV                                                                                                                                                                                                                                                                                                                                            
|  
|   | **Location**: the point in the Transmission Provider’s
      Bridge Substation where the 34.5 kV facilities 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
      kV circuits 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
      1 of 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                                                                                                                                                                                                      
|   | 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, 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)                                                                        

|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    

---

| |  | (2) | Short Distance Discount (SDD)
      [0.6 + (0.4 x transmission distance/75)]
| |  | --- | ----------------------------------------------------------------------------

|Path                     | Circuit Miles | TransmissionDemand (kW) | SDD Factor
|------------------------ | ------------- | ----------------------- | ----------
|Bridge - 
      Minidoka | 40.9          | 12,000                  | 0.8182    

|   | (b)                                                 | System Impact and/or Facilities Study Charge(s)                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|-- | --------------------------------------------------- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|   |                                                     | System Impact and/or 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 20thof each
      month for the subsequent month. Should the 20thfall 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)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|  
|   |                                                     | (2)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|  
|   |                                                     | (3)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                

|2 | The 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 1B                                                         | Effective at 0000 hours
|Specifications for Long-Term Firm Point-To-Point
      Transmission Service | on December 1, 2008    

---

| |     | (4)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               | Account – Agency Location Code of **89001401** directs
      the payment to the BPA Fund in the U.S. Treasury;                                                              
| | --- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|
| |     | (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 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 SERVICES
  The 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                                                                                                                                                                                                                                                                                                                                                

|Delivering Party (Resource)1 | POR Name & Voltage | POR Control Area | Reserved Capacity (kW) | POD Name & Voltage                  | POD Control Area | Reserved Capacity (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 34.5 kV                                                                                                                                                                                                                                                                                                                                       
|  
|   | Location:the point in the Transmission Provider’s Bridge
      Substation where the 34.5 kV facilities 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
      kV circuits 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
      1 of 4      
|--------------------------------------------------------------------------- | -----------------------
|Exhibit A, Table 1C                                                         | Effective at 0000 hours
|Specifications for Long-Term Firm Point-To-Point
      Transmission Service | on December 1, 2008    

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|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                                                                                                                                                                                                            
|   | 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, 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)                                                                         

|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    

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| |  | (2) | Short Distance Discount (SDD)[0.6 + (0.4 x transmission distance/75)]
| |  | --- | ---------------------------------------------------------------------

|Path              | CircuitMiles | TransmissionDemand
      (kW) | SDD Factor
|----------------- | ------------ | ----------------------------- | ----------
|Bridge - Minidoka | 40.9         | 12,000                        | 0.8182    

|   | (b)                                                 | System Impact and/or Facilities Study Charge(s)                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|-- | --------------------------------------------------- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|   |                                                     | System Impact and/or 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 20thof each
      month for the subsequent month. Should the 20thfall 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)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|  
|   |                                                     | (2)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|  
|   |                                                     | (3)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|  

|2 | The 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    

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| |     | (4)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              | Account – Agency Location Code of **89001401** directs
      the payment to the BPA Fund in the U.S. Treasury;                                                              
| | --- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|
| |     | (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
      4of 4       
|--------------------------------------------------------------------------- | -----------------------
|Exhibit A, Table 1C                                                         | Effective at 0000 hours
|Specifications for Long-Term Firm Point-To-Point
      Transmission Service | on December 1, 2008    

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

TABLE 2DIRECT ASSIGNMENT AND USE-OF-FACILITIES CHARGES

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

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

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

TABLE 3ANCILLARY 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 1A, 1B, and 1C, 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 revision or assignment of
  service is documented this Service Agreement, the provisions of the Transmission
  Provider’s Open Access Transmission 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
      operator  |                 
|2. | 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 Applicable                                       |                 
|6. | OPERATING RESERVE – SUPPLEMENTAL
      RESERVE                                                                                                                  | As Applicable                                       |                 

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

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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 service.

|If to the Transmission Customer: | If to the Transmission Provider:         
|-------------------------------- | -----------------------------------------
|                                 |                                          
|                                 | If by First Class Mail:                  
|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 - TM/OPP2      
|Phone:  (208) 424-1027           | Phone:  (360) 619-6010                   
|Fax:       (208) 424-1030        | Fax:       (360) 619-6940                
|                                 |                                          
|                                 | If by Overnight Delivery Service:        
|                                 | Bonneville Power Administration          
|                                 | 8100 NE Parkway Drive - Suite 50         
|                                 | Vancouver, WA 98662                      
|                                 | Attention: Transmission Account Executive
|                                 | for
      U.S. Geothermal – TM/OPP2      

|2. | NOTICES OF AN OPERATING NATUREAny 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 service.
|-- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|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 1A, 1B, and
      1C.
|-- | ---------------------------------------------------------------------------------------------------------

|05TX-11399, U.S. Geothermal, Inc. | Page
      1 of 4      
|--------------------------------- | -----------------------
|Exhibit B                         | Effective at 0000 hours
|Notices                           | on June 1, 2006        

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