Dive Brief:
- UNS Energy utilities have agreed to buy a 550-MW natural gas-fired unit of the Gila River power plant in Arizona from Entegra Power Group for $219 million, according to a Securities and Exchange Commission filing.
- Tucson Electric Power (TEP) will buy 75% of the unit and UNS Electric will take a 25% MW stake in the unit near Gila Bend, Arizona.
- UNS Energy expects to close on the deal in December 2014.
Dive Insight:
UNS, based in Tucson, said in September that it was in talks with Entegra over the possible purchase of Gila River Unit 3. The deal is part of a plan to shift TEP's power plant portfolio away from coal. TEP owns or leases 2,267 MW, with 1,422 MW of coal making up about 63% of the fleet. TEP will shed some of its coal capacity if plans to retire units at the Navajo and San Juan power plants move ahead as planned.
