AES Ironwood and AES Prescott together own and operate the 705MW AES Ironwood combined-cycle natural gas-fired power plant.
Total consideration for the transaction is about $304m, consisting of a cash purchase price of $87m, which includes $4.8m in expected working capital, and about $217m of net project indebtedness of AES Ironwood.
The plant began operation in 2001, and for the past four years PPL EnergyPlus, the marketing and trading subsidiary of PPL, has supplied natural gas for the operation of the plant in return for securing its full output under a tolling agreement that expires in 2021.
The sale is expected to close in the second quarter of this year following the receipt of necessary regulatory approvals and third-party consents.
