The transaction, which is expected to close in June 2008, entails the sale to Constellation Energy of West Valley Leasing Company, a subsidiary of PPM Energy, which is itself a subsidiary of Iberdrola Renovables.
The company noted that West Valley is a gas-fired power plant designed to cover peak electricity demand. Iberdrola Renovables has leased West Valley to PacifiCorp since it went into commercial operation in 2002.
PacifiCorp reportedly uses the facility to serve its utility load in Utah, and has decided not to extend the lease beyond May 2008.
The West Valley power plant, with five GE LM-600 combustion turbines, is located in a fast-growing southwestern suburb of Salt Lake City. Constellation Energy will add the plant to its generation asset base for supplying consumers on the US West Coast.
