Exhibit 13.2

Raft River Energy I LLC
Financial Statements
December 31, 2010 and 2009

Report of Independent Auditors

To the Members of Raft River Energy I LLC:

In our opinion, the accompanying balance sheets and the related statements of operations, of cash flows and of members' equity present fairly, in all material respects, the financial position of Raft River Energy I LLC at December 31, 2010 and December 31, 2009, and the results of its operations and its cash flows for the fiscal years ended December 31, 2010, December 31, 2009, November 28, 2008 and for the one-month period ended December 26, 2008 in conformity with accounting principles generally accepted in the United States of America. These financial statements are the responsibility of the Company's management; our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these statements in accordance with auditing standards generally accepted in the United States of America, which require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

As discussed in Note 4 to the financial statements, the Company has entered into significant transactions with certain related parties.

/s/ PricewaterhouseCoopers LLP

PricewaterhouseCoopers LLP
Portland, Oregon
March 15, 2011

* - See change in fiscal year end, Note 9

The accompanying notes are an integral part of these financial statements.

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* - See change in fiscal year end, Note 9

The accompanying notes are an integral part of these financial statements.

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The accompanying notes are an integral part of these financial statements.

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* - See change in fiscal year end, Note 9

The accompanying notes are an integral part of these financial statements.

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Contributed Capital and Membership Structure

Agreements between U.S. Geothermal Inc. and Raft River Holdings LLC were completed for construction financing of Phase I of the Raft River project. To accommodate the construction financing, U.S. Geothermal, Inc. sold 50% of its ownership in the Company to Raft River Holdings in August 2006, with U.S. Geothermal Inc. owning 500 Class B member units and Raft River Holdings owning 500 Class A member units.

As of December 31, 2010, U.S. Geothermal Inc. has contributed $17,953,640 ($16,892,344, net of distributions of $1,061,296) in cash and property to the project, while Raft River I Holdings LLC has contributed $34,170,100 ($33,705,975, net of distributions of $464,125) in cash. Profits and losses have been allocated according to the HLBV method.

Estimates

The preparation of financial statements in accordance with generally accepted accounting principles requires the use of estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities known to exist as of the date the financial statements are published, and the reported amounts of revenues and expenses during the reporting period. Uncertainties with respect to such estimates and assumptions are inherent in the preparation of the Company's financial statements; accordingly, it is possible that the actual results could differ from these estimates and assumptions and could have a material effect on the reported amounts of the Company's financial position and results of operations.

Financial Instruments

The Company's financial instruments consist of cash and cash equivalents, accounts receivable, accounts receivable-related party, accounts payable and accrued liabilities. Unless otherwise noted, it is management's opinion that the Company is not exposed to significant interest currency or credit risks arising from these financial instruments. The fair values of these financial instruments approximate their carrying values, unless otherwise noted.

Impairment of Long-Lived Assets

The Company evaluates long-lived assets for impairment in accordance with Accounting Standards Codification (ASC) No. 360, Property, Plant, & Equipment. Accordingly, the Company evaluates its long-term assets annually for impairment, or when circumstances or events occur that may impact the fair value of the assets. Management believes that there have not been any circumstances that have warranted the recognition of losses due to the impairment of long-lived assets as of December 31, 2010 and December 31, 2009.

Inventory

Inventory consists of supplies and replacement parts needed to maintain the power plant and are not intended for resale. Upon purchase, items are recorded at cost and maintained at the lesser of cost or fair market value. Inventory items are charged to operations in the period they are utilized.

Lease Arrangements

Arrangements which potentially convey the right to use property, plant, or equipment for a stated period of time are analyzed in accordance with financial reporting pronouncements that address determining whether an arrangement contains a lease to assess whether they should be accounted for as leases. For any arrangements that are found to meet the definition of a lease, an assessment is made as to whether they are capital leases or operating leases in accordance with accounting standards.

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Property, Plant and Equipment

Costs of acquisition of geothermal properties are capitalized on a geothermal reservoir basis. If a geothermal reservoir is abandoned, the costs thereof are charged to income in the year of abandonment. Property, plant and equipment are recorded at historical cost. Depreciation is calculated on a straight-line basis over the estimated useful life of the asset. Major improvements that significantly increase the useful lives and/or the capabilities of the assets are capitalized. Expenditures for repairs and maintenance are charged to expense as incurred.

Estimated useful lives by asset categories are summarized as follows:

Revenue

Revenue Recognition

Energy Sales

The Company's primary operating revenue originates from electrical power generated by the Company's geothermal power plant. The revenue is recognized when the power is produced and delivered to the customer who is reasonably assured to be able to pay under the terms defined in the Power Purchase Agreement ("PPA").

Renewable Energy Credits

Revenues from Renewable Energy Credits ("RECs") are recognized when the Company has met the terms of certain energy sales agreements with a financially capable buyer and has met the applicable governing regulations. The Company earns one REC for each megawatt hour produced from the geothermal power plant. Each REC is certified by Western Electricity Coordinating Council Council ("WREGIS") and sold under a REC Purchase and Sales Agreement.

Revenue Source

All of the Company's energy sales are received from one major power company that, primarily, operates in the State of Idaho. All of the power generated originates from the one power plant that utilizes a geothermal reservoir located in southeastern Idaho. Approximately 92% of the accounts receivable balance at December 31, 2010, represented a balance due from one major customer.

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The Company's related party transactions are summarized as follows:

Management Services Agreement

The Company has entered into a management services agreement with U.S. Geothermal Services, LLC ³management company´ effective August 9, 2006, to provide certain management and operating services. The contract terminates upon the earlier of mutual agreement of the contracting parties or on August 9, 2028. The quarterly management fee starts at $62,500, and in addition there are incentive payments linked to certain performance targets. If the Company does not have sufficient funds to pay the facility's necessary operating expenses in a particular month, the management fee shall be deferred with no interest penalty.

The actual management fee is subject to contracted adjustments based upon financial performance of the Company calculated on a semi-annual basis. In the event that actual results exceed expected results a bonus shall be earned. For the first $10,000, whereby the actual results exceed the expected results, the bonus shall equal 10% of the difference. If the difference between the actual results and the expected result is more than $10,000, the second component shall equal 50% of the excess over $10,000. The second component bonus amount shall not exceed $20,000. In the event that expected results exceed actual results the management fee shall be reduced. If the difference between the expected results and actual results is less than or equal to $175,000, then the management company shall pay the absolute value of the difference multiplied by 10%. If the difference between the expected results and actual results is in excess of $175,000, then the management company shall pay the Company the amount equal to absolute value of the difference in excess of $175,000.

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The Company paid U.S. Geothermal Services, LLC management services for the fiscal periods as follows:

Well Field Lease Contract

On November 2, 2006, the Company signed a lease contract with a primary term of 20 years for the groundwater rights needed for cooling purposes at the Facility payable to U.S. Geothermal Inc. ("lessor"). The annual rate of $90,000 is based upon the facility's expected needs of 900 acre feet per annum ("a.f.a.") ($10,000 per 100 a.f.a.). Based upon the needs of the facility and proper notice given by the lessor, the contract allows for an increase in the amount of water available for lease according to the noted rate. The payments are due annually within ten business days following the anniversary of the "placed in service" date which is the date of the facility became commercially operational. During the fiscal year ended November 28, 2008, the Company paid the lessor the "initial rent payment" of $90,000 due for the period of time from the contract date to the to the initial placed in service date, as well as an additional $74,475 for current year lease costs. Lease costs of $90,000 were paid in the year ended December 31, 2010.

The schedule of estimated lease payments for the primary contract term is as follows:

Geothermal Water and Land Lease

On October 19, 2006, the Company signed a lease contract with U.S. Geothermal Inc. ("lessor") that is effective as long as the Company is utilizing the resource. The contract provides the lessee exclusive geothermal water rights and nonexclusive land rights to 903 acres located in Raft River, Idaho. For the first 5 years ("primary term") the lease rate will be $5.00 per acre with an initial setup fee of $3,300. After the primary term, the lease will be based on a royalty of 10% of net proceeds. Net proceeds is defined as generated electric power, less deductions of the sum of direct operating costs, property taxes, franchise taxes, marketing expenses and depreciation. Depreciation will be calculated on a 15 year straight-line basis. During the year ended December 31, 2010, the Company paid lease costs of $4,515. As of December 31, 2010, the Company owed the lessor $16,845 in unpaid lease costs that was paid in full in January 2011.

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* The schedule includes the expected annual related party well field, water and land lease payments described in Note 4.

The terms of the management services agreement, the well field lease contract, and the water and land lease contract are described in Note 4.

Power Purchase Agreement

The Company signed a 20 year power purchase agreement dated December 29, 2004 with Idaho Power Company for sale of power generated from its planned phase one power plant. It has been determined this meets the definition of a lease arrangement under current accounting pronouncements and is accounted for as an operating lease. As there is no minimum payment, lease income will be recognized as revenue when sales of power occur.

Power Transmission

The Company has 27 year interconnection and wheeling agreement with Raft River Rural Electric Cooperative, Inc. with a date of execution of March 9, 2006. The contract specifies a 15 year extension subject to the renewal of the right of way agreement with the Bureau of Land Management. The interconnection and wheeling agreement provides for the transmission of electricity from the plant to the Bonneville Power Administration ("BPA") substation. On June 24, 2005, the Company signed a 30 year transmission agreement with a start date of June 1, 2006, with BPA for transmission of electricity from the BPA substation to Idaho Power.

Renewable Energy Credits

The Company signed a 10 year contract on July 29, 2006, to sell renewable energy credits to Holy Cross Energy. After the Holy Cross Energy contract has expired, the Company will sell renewable energy credits to the Public Utility District of Clallam County, Washington, in accordance with a 17 year contract signed December 2010.

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Due to the changes imposed on Member A's parent company, the Company was required to change its fiscal year-end from November to December, beginning with fiscal 2009. This change in the Company's fiscal year-end resulted in a one-month transition period that began on November 29, 2008 and ended on December 26, 2008. Fiscal year 2009 began on December 27, 2008 and ended on December 31, 2009. Financial information for this fiscal transition period is included in these financial statements.

The following summarized financial information was presented to compare operating results for the transition period:

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