Sempra U.S. Gas & Power completed the sale of one 625 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 December 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 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.
Sempra U.S. Gas & Power, LLC 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 Sempra Energy companies’ nearly 17,000 employees serve more than 31 million consumers worldwide.