The SRP Board of Directors approved the proposal to acquire 100% ownership of the 625MW block and a 50% undivided interest in the infrastructure facilities shared by the two blocks, for $371m.
The largest supplier of raw water to the greater-Phoenix metropolitan area, SRP has acquired one of Mesquite Power’s two 625MW power blocks.
Under the deal, SRP will become the operator of the blocks, each including two gas turbines and a steam turbine.
The plant began operation in 2003 in Arlington, Arizona and is among the nation’s cleanest and most efficient gas-fired power plants.
Sempra US Gas & Power president and CEO Jeffrey W. Martin said the deal will help the company use the capital to increase its presence in natural gas sector.
"This strategic sale comes at the right time for Sempra U.S.Gas and Power as we continue to reduce our exposure to the merchant power markets, while also allowing us to put greater emphasis on growing our southeast natural gas portfolio," Martin added.
The Mesquite Power was the first power plant in Arizona to receive the Voluntary Protection Programs’ award.
