Document:

Filed by Automated Filing Services Inc. (604) 609-0244 - U.S. Geothermal Inc. - Exhibit 10.27

 

 Service Agreement No. 05TX-11399

 SERVICE AGREEMENT 

  for 

  POINT-TO-POINT 

  TRANSMISSION SERVICE

  executed by the 

  UNITED STATES OF AMERICA 

  DEPARTMENT 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  
	 	  	 	 Department of Energy  
	 	  	 	 Bonneville Power Administration  
	 	 	 	 	 
	By:  	 
    	 	By:  	 
    
	 	 	 	 	 
	Name: 	 
    	 	Name: 	
      Richard A. Gillman  
	 (Print/Type)  	 	 (Print/Type)  
	 	 	 	 	 
	Title:  	 
    	 	Title:	
      Transmission Account Executive  
	 	 	 	 	 
	Date:  	 
    	 	Date:  	 
    

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

 EXHIBIT A 

  SPECIFICATIONS FOR LONG-TERM FIRM 

  POINT-TO-POINT TRANSMISSION SERVICE 

 TABLE 1A 

  REQUEST 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) 	Transmission Charge 

      PTP-04 Rate Schedule or successor rate schedules. 
	 	 	 	 
	 	 	(1) 	Reservation Fee 

      Within 30 days after the Transmission Customer signs this Service Agreement,
      the first annual nonrefundable reservation fee of $12,336 shall be paid
      to the Transmission Provider. For the second and any subsequent reservation
      fees, the Transmission Provider will bill the Transmission Customer 30 days
      prior to their due date. If the deferral or extension of service spans two
      or more rate periods, the reservation fee will be based on the PTP Rate
      in effect at the time each payment is due. The Reservation Fee is based
      on the PTP Rate only and does not include either of the two Ancillary Services
      that the Transmission Customer is obligated to purchase from the Transmission
      Provider. 

	
      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 20th of each
      month for the subsequent month. Should the 20th fall on a weekend
      or Federal holiday, the prepayment must be made on the preceding business
      day. The first prepayment is due to the Transmission Provider no later than
      May 20, 2006, for the month of June 2006. 
	 
	 	 (c)      	 The Transmission Customer shall wire transfer all prepayments
      to the Federal Reserve Bank in New York City so that they arrive no later
      than 2:00 p.m. Eastern Standard or Daylight Time, whichever is in effect.
      The Transmission Provider will verify that payment has been received at
      the Federal Reserve Bank. 
	 
	 	 (d)     	 The Transmission Customer shall include the following information
      on all wire transfers under this Agreement: 
	 
	 	 	 (1)      	 ABA number – The ABA number for the Federal Reserve Bank in New
      York City is 021030004; 
	 
	 	 	 (2)      	 Receiving Bank – “TREAS NYC” designates the Federal
      Reserve Bank in New York City as the receiving bank; 
	 
	 	 	 (3)      	 Product Code – "TREAS NYC/CTR"; 

___________________________

	 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 A 

  SPECIFICATIONS FOR LONG-TERM FIRM 

  POINT-TO-POINT TRANSMISSION SERVICE 

 TABLE 1B 

  REQUEST 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. 

 ___________________________

  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 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)	Reservation Fee  

      Within 30 days after the Transmission Customer signs this Service Agreement,
      the first annual nonrefundable reservation fee of $12,336 shall be paid
      to the Transmission Provider. For the second and any subsequent reservation
      fees, the Transmission Provider will bill the Transmission Customer 30 days
      prior to their due date. If the deferral or extension of service spans two
      or more rate periods, the reservation fee will be based on the PTP Rate
      in effect at the time each payment is due. The Reservation Fee is based
      on the PTP Rate only and does not include either of the two Ancillary Services
      that the Transmission Customer is obligated to purchase from the Transmission
      Provider. 

	
      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  	 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 20th of each
      month for the subsequent month. Should the 20th fall on a weekend
      or Federal holiday, the prepayment must be made on the preceding business
      day. The first prepayment is due to the Transmission Provider no later than
      November 20, 2008, for the month of December 2008. 
	 
	 	 (c)      	 The Transmission Customer shall wire transfer all prepayments
      to the Federal Reserve Bank in New York City so that they arrive no later
      than 2:00 p.m. Eastern Standard or Daylight Time, whichever is in effect.
      The Transmission Provider will verify that payment has been received at
      the Federal Reserve Bank. 
	 
	 	 (d)      	 The Transmission Customer shall include the following information
      on all wire transfers under this Agreement: 
	 
	 	 	 (1)      	 ABA number – The ABA number for the Federal Reserve Bank in New
      York City is 021030004; 
	 
	 	 	 (2)      	 Receiving Bank – “TREAS NYC” designates
      the Federal Reserve Bank in New York City as the receiving bank; 
	 
	 	 	 (3)      	 Product Code – "TREAS NYC/CTR"; 

___________________________

	 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 A 

  SPECIFICATIONS FOR LONG-TERM FIRM 

  POINT-TO-POINT TRANSMISSION SERVICE 

 TABLE 1C 

  REQUEST 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. 

 ___________________________

  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 1C	 Effective at 0000 hours  
	 Specifications for Long-Term Firm Point-To-Point
      Transmission Service  	 on December 1, 2008  

 

	 4.      	 POINT OF DELIVERY 
	 
	 	 MINIDOKA PP 138 kV – IPC POINT OF DELIVERY 
	 
	 	 Location: in the Government’s Minidoka Power Plant where
      the 138 kV facilities of the Government and IPC are connected; 
	 
	 	 Voltage: 138 kV; 
	 
	 	 Metering: None. It is the responsibility of the Transmission Customer
      to assure that metering is implemented consistent with 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) 	Reservation Fee

      Within 30 days after the Transmission Customer signs this Service Agreement,
      the first annual nonrefundable reservation fee of $12,336 shall be paid
      to the Transmission Provider. For the second and any subsequent reservation
      fees, the Transmission Provider will bill the Transmission Customer 30 days
      prior to their due date. If the deferral or extension of service spans two
      or more rate periods, the reservation fee will be based on the PTP Rate
      in effect at the time each payment is due. The Reservation Fee is based
      on the PTP Rate only and does not include either of the two Ancillary Services
      that the Transmission Customer is obligated to purchase from the Transmission
      Provider. 

	
      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  

 

	 	 	(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 20th of each
      month for the subsequent month. Should the 20th fall on a weekend
      or Federal holiday, the prepayment must be made on the preceding business
      day. The first prepayment is due to the Transmission Provider no later than
      November 20, 2008, for the month of December, 2008. 
	 
	 	 (c)      	 The Transmission Customer shall wire transfer all prepayments
      to the Federal Reserve Bank in New York City so that they arrive no later
      than 2:00 p.m. Eastern Standard or Daylight Time, whichever is in effect.
      The Transmission Provider will verify that payment has been received at
      the Federal Reserve Bank. 
	 
	 	 (d)      	 The Transmission Customer shall include the following information
      on all wire transfers under this Agreement: 
	 
	 	 	 (1)      	 ABA number – The ABA number for the Federal Reserve Bank in New
      York City is 021030004; 
	 
	 	 	 (2)      	 Receiving Bank – “TREAS NYC” designates the
      Federal Reserve Bank in New York City as the receiving bank; 
	 
	 	 	 (3)      	 Product Code – "TREAS NYC/CTR"; 
	 

___________________________

	 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  

 

	 	 	 (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  

 EXHIBIT A 

  SPECIFICATIONS FOR LONG-TERM FIRM 

  POINT-TO-POINT TRANSMISSION SERVICE 

 TABLE 2 

  DIRECT 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  

 EXHIBIT A 

  SPECIFICATIONS FOR LONG-TERM FIRM 

  POINT-TO-POINT TRANSMISSION SERVICE 

 TABLE 3 

  ANCILLARY 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  

 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 NATURE 

      Any notice, request, or demand of an operating nature by the Transmission
      Provider or the Transmission Customer shall be made either orally or in
      writing by telefax or sent by First Class mail or overnight delivery 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, 2006Exhibit 10.4

                           COMMERCIAL PROMISSORY NOTE

$12,766                                                 Dated: January 31, 2000

         FOR VALUE  RECEIVED,  the  undersigned,  Life  USA,  Inc.,  a  Colorado
corporation (hereinafter "Maker"),  promises to pay to Mark Urich, at such place
as the Holder may designate in writing,  the  principal  sum of TWELVE  THOUSAND
SEVEN HUNDRED SIXTY SIX DOLLARS ($12,766), together with interest at 8% thereon,
due on demand.

         Maker has the right to prepay this Note in whole or in part at any time
during the term of this Note without premium or penalty.

         In event  Maker  shall (i)  default  in the  performance  of any of the
obligations,  covenants or agreements legally imposed by the terms of this Note,
or (ii)  apply for or  consent in  writing  to the  appointment  of a  receiver,
trustee,  or  liquidator  of  Maker  or  (iii)  file  a  voluntary  petition  in
bankruptcy,  or admit in writing Maker's  inability to pay Maker's debts as they
come due, or (iv) make general assignments for the benefit of creditors,  or (v)
file a petition or answer seeking reorganization or rearrangement with creditors
or taking  advantage of any insolvency law, or (vi) file an answer admitting the
material  allegations  of a  petition  filed  against  Maker in any  bankruptcy,
reorganization,  insolvency or similar proceedings, at the option of the Holder,
the  whole  indebtedness  evidenced  hereby  may be  declared  due  and  payable
whereupon  the entire  unpaid  principal  balance of this Note and all  interest
accrued  thereon from last payment date @ 18% per annum shall  thereupon at once
mature and become due and payable  without  presentment or demand for payment or
notice of the intent to exercise  such option or notice of the  exercise of such
option by the Holder,  or notice of any kind, all of which are hereby  expressly
waived by Maker and may be collected by suit or other legal proceedings.

         If all or any  part of the  amount  of this  Note  be  declared  due in
accordance  with the  other  provisions  hereof,  or if any  installment  herein
provided is not paid when due, the  principal  balance as the case may be, shall
bear interest at the lesser of (i) eighteen percent (18%) per annum, or (ii) the
Maximum Rate allowed under  applicable  law until paid in full or until the Note
is reinstated.  Notice of Default shall be given,  in writing,  to Maker,  after
five days after  occurrence  of default.  Maker shall have 10 days after written
Notice of Default,  within  which to cure the default  plus  interest at default
rate, legal fees and costs incurred.

         Except as otherwise  provided herein, the undersigned and all sureties,
guarantors  and  endorsers of this Note  severally  waive all notices,  demands,
presentments  for  payment,  notices  of  non-payment,  notice of  intention  to
accelerate the maturity,  notices of acceleration,  notices of dishonor, protest
and notice of protest,  diligence in collecting or bringing suit as to this Note
and as to each, every and all installments hereof and all obligations  hereunder
and  against  any party  hereto and to the  application  of any  payment on this
obligation,  or as an  offset  hereto,  and agree to all  extensions,  renewals,
partial  payments,  substitutions  or evidence of  indebtedness  and the taking,
release or substitution of all or any part of the security or the release of any
party liable hereon with or without notice before or after maturity.
<PAGE>

         It is the intention of the parties hereto to comply with the usury laws
applicable to this loan if any,  accordingly  it is agreed that  notwithstanding
any provision to the contrary in this Note or in any of the  documents  securing
payment  hereof no such  provision  shall  require  the  payment  or permit  the
collection of interest in excess of the maximum  permitted by law. If any excess
of interest is provided for,  contracted for, charged for or received,  then the
provisions  of this  paragraph  shall  govern and  control and neither the Maker
hereof nor any other party  liable for the payment  hereof shall be obligated to
pay the amount of such excess interest.  Any such excess interest which may have
been  collected  shall be, at the Holder's  option,  either  applied as a credit
against  the then unpaid  principal  amount  hereof or  refunded  to Maker.  The
effective  rate of interest shall be  automatically  subject to reduction to the
maximum  lawful  contract  rate allowed under the usury laws as now or hereafter
construed.  It is further agreed that without  limitation of the foregoing,  all
calculations of the rate of interest  contracted  for,  charged for, or received
under this Note which are made for the purposes of determining whether such rate
exceeds the maximum lawful rate,  shall be made, to the extent permitted by law,
by  amortizing,  prorating,  allocating  and spreading in equal parts during the
full stated  term of this Note,  all  interest  contracted  for,  charged for or
received from the Maker or otherwise by the Note Holder.

         In the  event  this Note is  placed  in the  hands of an  attorney  for
collection  (whether or not suit is filed),  or in the event it is  collected by
suit or through  bankruptcy,  probate,  receivership or other legal  proceedings
(including  foreclosure),  the undersigned hereby agrees to pay to the Holder as
attorney's  fees a reasonable  amount in addition to the  principal and interest
then due hereon, and all other costs of collection.

         IN WITNESS  WHEREOF,  Maker has fully executed this Note as of the date
first above written.

                                        Life USA, Inc., a Colorado Corporation

Corporate Seal
                                        by:/s/Mark Urich
                                        -----------------------
                                        Mark Urich, President

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