IDAHO FALLS, Idaho (AP) - A renewable energy company is seeking final approval to begin exploratory drilling for hot water in eastern Idaho next month.

Idatherm plans to drill the first well of a geothermal project near Willow Creek along the Bingham and Bonneville county lines. If successful, Idaho could become the fifth state to use geothermal power.

"We're hoping for success," said Carl Austin, exploration manager for Idatherm, which is based in southern Idaho. "I want to know exactly what's down there."

Previous drilling has shown promise. In the late 1970s, an oil company struck 480-degree water in that location.

Dependability of geothermal energy as a natural, renewable resource is highly marketable, said Bob Neilson, manager of the renewable energies and power technologies department of the Idaho National Engineering and Environmental Laboratory.

"It's local. It's renewable," he said. "Fluids are returned to the ground. It's very clean."

Geothermal energy production involves drilling into the earth's crust to allow heat to escape, either as steam or as super-heated water. Pipes carry the hot water to a plant, where the steam turns a turbine to generate electricity.

In 2002, about 43 power plants currently produce geothermal power in the United States, according to the Department of Energy.

The State Department of Public Lands approved the project's operating plan last week. Within a couple weeks, Austin expects to have a drilling permit from the Department of Water Resources for three wells at a cost of about $5 million each.

Ideally, Austin said, each well will produce 10 megawatts of power. One megawatt is enough to power about 750 homes.

The project could expand to 20 wells, depending on how much steam can be produced, Austin said.

AP-WS-04-29-04 1058EDT