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California utility locks in 86 MW of geothermal power from Salton Sea plants

California utility locks in 86 MW of geothermal power from Salton Sea plants

Built World

Imperial Irrigation District signs 10-year deal with BHE Renewables for around-the-clock renewable power

October 20th, 2026: IID union announces unfair labor practice charge and strike warning

Overview

Updated Oct 27

The Imperial Irrigation District locked in 86 megawatts of geothermal power from two BHE Renewables plants near the Salton Sea. The 10-year deal covers 44 megawatts from Salton Sea 4 and 42 from Leathers, both in Calipatria, with deliveries starting January 1, 2027.

Geothermal runs day and night, so the power helps IID meet summer peaks in the Imperial and Coachella Valleys. The same brine may also carry lithium, but a pilot plant built to pull it out fell short of commercial-scale recovery, according to state project records reported on October 19. A federal analysis puts the brine at about 198 parts per million lithium.

Why it matters

IID's 10-year geothermal contract buys firm power for summer peaks, and the brine beneath it could yield lithium if extraction works.

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Key Indicators

86 MW
Geothermal capacity added
44 MW from Salton Sea 4 and 42 MW from Leathers.
10 years
Agreement term
Deliveries run from January 1, 2027 through 2036.
345 MW
BHE Renewables' Imperial Valley capacity
Ten geothermal plants across the region.
198 ppm
Lithium in Salton Sea brine
Average concentration in the brine, per a federal analysis reported in October 2026.

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People Involved

JA
Jamie Asbury
General Manager, Imperial Irrigation District
Overseeing IID's power and water operations
AC
Alex Cardenas
Chairperson, IID Board of Directors
Leading the board's oversight of geothermal contracts

Organizations Involved

Imperial Irrigation District
Imperial Irrigation District
Community-owned utility
Signed 86-MW geothermal PPA with BHE Renewables; union announced an unfair labor practice charge in October 2026

Community-owned utility providing water and electricity across the Imperial and Coachella Valleys in Southern California.
BHE Renewables
BHE Renewables
Renewable energy company
Signed 86-MW geothermal PPA with IID through CalEnergy subsidiary

Renewable energy arm of Berkshire Hathaway Energy, operating ten geothermal plants in California's Imperial Valley.
TerraLithium
TerraLithium
Lithium extraction venture
Exploring lithium extraction from geothermal brine

Subsidiary of Occidental Petroleum exploring lithium extraction from geothermal brine at BHE Renewables' Salton Sea facilities.

Timeline

2017 October 2026

10 events Latest: October 20th, 2026 · 3 weeks ago
Tap a bar to jump to that date

  1. IID union announces unfair labor practice charge and strike warning

    Latest Labor

    IBEW Local 465 representative Nate Fairman told IID's board the union had filed a 10-page charge alleging bad-faith bargaining, and said workers could walk off the job if talks do not improve. The union represents about 900 district employees.

  2. Report: Salton Sea lithium pilot missed commercial-scale goal

    Report

    A direct lithium extraction pilot at a Salton Sea geothermal plant did not reach commercial-scale recovery, California Energy Commission project records show, after the selected extraction media failed under field conditions. The operator said it would pursue another technology with its own funds.

  3. Controlled Thermal Resources names new COO for Hell's Kitchen

    Appointment

    CTR appointed Stuart Job as COO for its 650 MW Hell's Kitchen geothermal and critical minerals project at the Salton Sea, signaling progress on a project IID has a power purchase agreement with.

  4. ThinkGeoEnergy reports the IID-BHE Renewables deal

    Report

    Geothermal industry outlet covers the 86-MW PPA and its role in IID's resource plan.

  5. Black Rock geothermal applicant waits on state procurement

    Filing

    In a status report to the California Energy Commission, the Black Rock geothermal project's applicant said it is waiting for the state's new central procurement entity at the Department of Water Resources and the one-gigawatt geothermal solicitation the California Public Utilities Commission requested.

  6. IID announces 86-MW geothermal agreements with BHE Renewables

    Agreement

    IID signed 10-year deals for 44 MW from Salton Sea 4 and 42 MW from Leathers, plus Yuma Cogeneration capacity.

  7. TerraLithium demonstration plants enter commissioning

    Development

    BHE Renewables and TerraLithium completed construction on direct lithium extraction demonstration plants at Salton Sea geothermal facilities. Commissioning completes in 2026, with the demonstration plant operating through 2027.

  8. IID approves Hell's Kitchen PPA amendments

    Decision

    Construction delays pushed operation to 2026 and raised the price to $93 per megawatt-hour, with a $5 million penalty payment.

  9. IID signs Hell's Kitchen geothermal PPA

    Agreement

    IID contracted with Controlled Thermal Resources for geothermal power at $69 per megawatt-hour.

  10. IID signs first CalEnergy geothermal PPA

    Agreement

    IID added geothermal power to its portfolio as it ended coal involvement.

Scenarios

1

Geothermal deliveries begin on schedule

Likely Resolves by Q1 2027

Discussed by: IID and BHE Renewables

The Salton Sea 4 and Leathers plants deliver power starting January 1, 2027, as contracted. IID adds 86 MW of firm renewable capacity to its portfolio, strengthening summer reliability across the Imperial and Coachella Valleys.

2

Project delays push back delivery

Possible Resolves by Q2 2027

Discussed by: Calexico Chronicle, based on the Hell's Kitchen precedent

Construction or permitting delays shift the start date, as happened with IID's Hell's Kitchen project, which slipped from 2024 to 2026 and saw its price rise from $69 to $93 per megawatt-hour. A similar delay would force IID to rely more on spot-market purchases during peak periods.

3

Lithium extraction becomes a major revenue stream

Uncertain Resolves by End of 2028

Discussed by: ThinkGeoEnergy, BHE Renewables

BHE Renewables' partnership with TerraLithium scales up lithium production from geothermal brine at its Salton Sea plants. This would add a revenue stream beyond electricity and could reshape the economics of the region's geothermal fleet, potentially lowering power costs for IID customers.

4

Hell's Kitchen delivers despite past delays

Possible Resolves by End of 2026

Discussed by: CTR's new leadership appointment, IID's revised PPA

CTR's hiring of a senior oil and gas executive as COO suggests the company is serious about completing the 650 MW Hell's Kitchen project. If delivered, IID gains additional geothermal capacity beyond its BHE Renewables deal, reducing reliance on natural gas peakers. GM's exit from its investment in CTR's lithium plans could still strain funding, but the COO appointment points to forward momentum.

5

IID workers walk off the job

Uncertain Resolves by Q2 2027

Discussed by: IBEW Local 465

The union representing about 900 IID employees has warned of a work stoppage if contract talks do not move. A strike would hit a utility that also supplies water to Imperial Valley farms, not just the power portfolio the geothermal deal is meant to firm up.

Historical Context

2 moments from history that rhyme with this story — and how they unfolded.

January 2020 - November 2024

Hell's Kitchen geothermal delays (2020-2024)

IID signed a geothermal PPA with Controlled Thermal Resources in January 2020 at $69 per megawatt-hour. Construction delays pushed the commercial operation date from March 2024 to as late as December 2026, and the price rose to $93 per megawatt-hour.

Then

IID secured a $5 million penalty payment from the developer and revised contract terms.

Now

The episode showed that geothermal projects in the region face real schedule and cost risk.

Why this matters now

It is the cautionary tale against which the BHE Renewables deal will be measured.

2017

IID's coal exit and geothermal turn (2017)

IID ended its involvement with coal power generation in 2017 and signed a geothermal PPA with CalEnergy, the same operator behind the new deal.

Then

IID added local renewable baseload power to its portfolio.

Now

It set the pattern of geothermal procurement that continues with the 2026 BHE Renewables deal.

Why this matters now

The new agreement extends a strategy IID has pursued for nearly a decade.

Sources

(12)
+6
ThinkGeoEnergy American Public Power Association KXO Radio Calexico Chronicle Imperial Valley News BHE Renewables FinancialContent Climate Colored Goggles Imperial Valley Weekly EcoPortal The Desert Review California Energy Commission