FOR IMMEDIATE RELEASE
SRP Board Approves Purchase of New Power Resources
Natural Gas Units in Gila Bend will Provide Low-Cost Energy to SRP Customers
Salt River Project’s Board of Directors has approved the purchase of two 550-megawatt natural gas generating units at the Gila River Power Station, located in Gila Bend. SRP is buying Blocks 1 and 2 at the site from CXA Sundevil Power I, and CXA Sundevil Power II Inc. for $330 million.
In a separate motion, the Board approved a purchase power agreement (PPA) that will allow the sale of power from Block 2 to Tucson Electric Power (TEP). That PPA includes an option for TEP to purchase Block 2 at a future date.
The purchase of Block 1 at the plant will help SRP economically meet system needs and defer planned capital expenditures associated with the construction of new generating assets.
“The acquisition of Unit 1 at the Gila River Power Station further bolsters SRP’s resource portfolio,” said SRP Deputy General Manager Mike Hummel. “This purchase represents an attractive economic opportunity for SRP as it is a fraction of the cost to build a new generating facility.”
Hummel added that new natural gas generation further enables SRP to integrate intermittent, renewable resources into its portfolio.
Power Blocks 1 and 2 at the Gila River plant are each combined cycle units comprised of two combustion turbines and two heat recovery steam generators that meet a range of energy needs for SRP customers.
SRP purchased Block 4 at the Gila River plant in September 2016. The transaction for Blocks 1 and 2 is expected to close by early 2018.
SRP is a community-based, not-for-profit public power utility and the largest provider of electricity in the greater Phoenix metropolitan area, serving more than 1 million customers.