The Valencia facility is a gas-fired power plant under a tolling contract to provide energy and capacity to the Public Service Company of New Mexico (PNM).
This plant is part of the company’s pending sale of independent power generation plants to affiliates of Hastings Funds Management and IIF BH Investment, expected to close in late second quarter or early third quarter of 2008.
Under the terms of the sale agreement, the Valencia power plant is required to be in commercial operation as specified by the tolling agreement with PNM.
David Emery, chairman and CEO of the Black Hills Corporation, said: Our power generation and corporate development teams did an outstanding job of getting the Valencia power plant sited, built and operating ahead of schedule and below the projected construction cost of $101 million.
