SAN DIEGO, Feb. 28, 2013 /PRNewswire/ -- Sempra U.S. Gas & Power today announced it has completed the sale of one 625-megawatt (MW) block of its 1,250-MW Mesquite Power natural gas-fired power plant to the Salt River Project Agricultural Improvement and Power District (SRP) for $371 million.
Under terms of the sales agreement, which was announced on Dec. 26, 2012, SRP acquires 100-percent ownership of a 625-MW power block and 50-percent undivided interest in plant facilities. Sempra U.S. Gas & Power retains ownership of the power plant's remaining 625-MW power block and 50-percent interest in the plant facilities.
"Salt River Project is one of Arizona's largest utilities, and we could not be more pleased to partner with them in the ownership and operation of Mesquite Power," said Jeffrey W. Martin, president and CEO of Sempra U.S. Gas & Power. "The proceeds from this transaction will be used to support our growth initiatives, while joint ownership of the facility has the added benefit of reducing our exposure to the merchant power markets."
Salt River Project supplies electricity to about 950,000 customers. The utility owns and operates electric irrigation and water supply systems. As part of the transaction, Salt River Project also will become the operator of the Mesquite Power facility.
Mesquite Power, which has been in operation since 2003 in Arlington, Ariz., is among the nation's cleanest and most efficient gas-fired power plants. It was the first power plant in Arizona to receive a Voluntary Protection Programs award, the highest recognition for exemplary safety performance, in 2009. The plant recently was awarded Voluntary Protection Programs recertification for 2012 to 2015.
Sempra U.S. Gas & Power, LLC is a leading developer of renewable energy and natural gas solutions. The company operates solar, wind and natural gas power plants that generate enough electricity for nearly 1 million homes, along with natural gas storage, pipelines and distribution utilities. The company is a subsidiary of Sempra Energy (NYSE: SRE), a Fortune 500 energy services holding company with 2012 revenues of approximately $10 billion. The Sempra Energy companies' nearly 17,000 employees serve more than 31 million consumers worldwide. For more information, visit www.SempraUSGP.com.
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Sempra U.S. Gas & Power, LLC is not the same company as the utility, San Diego Gas & Electric (SDG&E) or Southern California Gas Company (SoCalGas), and Sempra U.S. Gas & Power, LLC is not regulated by the California Public Utilities Commission.
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