Scott Harelson, SRP, (602) 236-2500
Nov. 20, 2014

SRP Signs Deal with sPower for Solar Energy Facility near Florence

New Project Demonstrates Increasing Affordability of Community-scale Solar

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Salt River Project today announced a 21-year power purchase agreement for 45 megawatts (MW) of solar photovoltaic energy from a facility to be built near Florence in 2015. SRP will purchase all of the solar energy produced at the Sandstone Solar Power Plant, which will be constructed and owned by Utah-based independent power producer sPower.

According to SRP Deputy General Manager John Sullivan, the price SRP will pay for power from the community-scale solar plant is very near SRP's average cost of energy.

"This opportunity best represents SRP's goal to acquire the most cost-effective clean, renewable resources for the benefit of all of our customers," said Sullivan. "In time, the price we will pay for energy from the Sandstone Solar Plant will actually be less than some of our traditional resources."

The 21-year agreement is valued at around $65 million and the price SRP will pay per kilowatt-hour (kWh) from the facility is about 5.3 cents. The average on-peak market price for electricity is about 4 cents per kWh. The 45 megawatts of energy produced at the plant is equivalent to about 10,000 residential installations.

Combined with the Copper Crossing Solar Ranch in Florence, the Queen Creek Solar Farm and a solar tracking system at ASU Polytechnic Campus in Mesa, SRP will soon have about 85 MW of solar energy generated from local community-scale solar facilities.

The project will be constructed on approximately 300 acres and will utilize more than 500,000 photovoltaic modules mounted on a single-axis tracking system that follows the sun, allowing the panels to more efficiently capture energy as the sun moves throughout the sky. Officials at sPower plan to have the facility commercially available by December 2015.

"I have long maintained that an 'all of the above' energy strategy is the best path for our country. Solar has played a key role – and will continue to provide a greater share of our energy needs. The Sandstone solar facility illustrates the right way to develop new renewable-energy opportunities," said Rep. Paul Gosar who represents Florence and the district where the facility will be built. "The fact that solar power is becoming economically competitive with traditional energy sources means we can achieve our goal of affordable energy independence with less environmental impact. That's important to the customers who depend on SRP for reliable and affordable electricity."

"The Sandstone project is an example of why community-scale solar projects represent a bright future for renewable energy," said Ryan Creamer, sPower's CEO. "We're pleased to partner with SRP and look forward to building a solar energy facility that supports SRP's sustainability goals."

The SRP Board has set a goal to meet 20 percent of SRP's retail electricity requirements through sustainable resources by the year 2020. Currently, SRP is ahead of schedule – providing more than 12 percent of retail energy needs with sustainable resources, which include solar, wind and geothermal energy, hydro power and conservation and energy-efficiency measures.

SRP is a community-based nonprofit utility. It is the third-largest public power utility in the nation, serving about 990,000 electric customers in the greater Phoenix metropolitan area. SRP is also the largest provider of water to the greater Phoenix metropolitan area, delivering about 800,000 acre-feet annually to agricultural, urban and municipal water users.

About sPower

Headquartered in Salt Lake City, with offices in San Francisco and New York, sPower is a leading independent power producer (IPP) that owns and/or operates more than 130 utility and distributed electrical generation systems across the United States. With greater than a gigawatt between construction and pipeline, sPower is actively buying renewable assets in any stage of development in North America and the UK. It is a portfolio company of Fir Tree Partners, a leading global investment fund with more than 20 years of investing history and approximately $13 billion of capital under management.