PROPERTY, PLANT AND EQUIPMENT
 3 Months Ended
Mar. 31, 2013
PROPERTY, PLANT AND EQUIPMENT [Text Block]

NOTE 6 - PROPERTY, PLANT AND EQUIPMENT

During the three months ended March 31, 2013, the remaining balance of the ITC cash grant related to previously disputed expenditures of approximately $1.05 million was collected. On February 15, 2013, the Company signed a settlement agreement with SAIC (the general contractor and construction loan holder) that reduced the construction liability including construction cost and accrued interest by approximately $2.14 million for the San Emidio, Nevada project. These items reduced the carrying cost of the new San Emidio plant in the current reporting period.

Property, plant and equipment, at cost, are summarized as follows:

    March 31,     December 31,  
    2013     2012  
Land $ 1,603,509   $ 1,603,509  
Power production plant   158,482,959     159,795,806  
Grant proceeds for power plants   (52,965,236 )   (54,684,452 )
Wells   66,650,807     66,619,604  
Grant proceeds for wells   (2,487,773 )   (2,487,773 )
Furniture and equipment   1,404,410     1,356,143  
    172,688,676     172,202,837  
             
           Less: accumulated depreciation   (16,117,744 )   (14,491,277 )
    156,570,932     157,711,260  
Construction in progress   2,925,903     2,877,994  
             
  $ 159,496,835   $ 160,589,254  

The Company capitalized interest costs as a component of the Neal Hot Springs and San Emidio projects as follows:

    For the Three Months Ended March 31,  
    2013     2012  
Total interest expense incurred $ 481,769   $ 574,901  
Capitalized interest   -     573,426  

Depreciation expense charged to plant operations and administrative expenses for the following the three months ended March 31, 2013 and 2012 was $1,626,467 and $667,472 ; respectively.

Changes in Construction in Progress are summarized as follows:

          For the Nine  
    For the Three     Months Ended  
    Months Ended     December 31,  
    March 31, 2013     2012  
Beginning balances $ 2,877,994   $ 145,987,128  
     Development/construction   47,909     64,564,914  
     Grant reimbursements and rebates   -     (55,244,491 )
     Transfers into production   -     (152,429,557 )
Ending balances $ 2,925,903   $ 2,877,994  

Construction in Progress, at cost, consisted of the following projects/assets by location are as follows:

    March 31,     December 31,  
    2013     2012  
Raft River, Idaho:            
         Unit II, power plant, substation and transmission lines $ 750,493   $ 750,493  
         Unit II, well construction   2,102,168     2,100,862  
    2,852,661     2,851,355  
Neal Hot Springs, Oregon:            
         Wells   73,242     26,639  
             
  $ 2,925,903   $ 2,877,994