APS purchase of Sundance Generating Station complete

PHOENIX, May 16, 2005 (BUSINESS WIRE) — Arizona Public Service Company (APS) announced today that it has completed its $190-million acquisition from PPL Corporation of the 450-megawatt Sundance Generating Station near Coolidge, Ariz.

Approval from the Federal Energy Regulatory Commission was received last week and was the last step in the transaction announced in June 2004.

Located 55 miles southeast of downtown Phoenix in Pinal County, the simple-cycle, natural gas-fired Sundance station consists of 10 quick-start combustion turbines capable of providing enough electricity for approximately 225,000 homes.

Sundance will be important in meeting the ever-growing peak energy needs of APS customers. This plant, combined with the additional 1,000 megawatts of long-term peaking capacity APS will be seeking through a competitive bidding process later this year, should meet the company’s resource needs through 2007.

“The reliable, quick-response capabilities of Sundance are critical for us, particularly as we head into summer,” said Jack Davis, APS President and Chief Executive Officer. “Summer is our period of greatest customer demand, and the operating flexibility and economic stability offered by Sundance during peak times will provide the perfect complement to our existing fleet of generating stations and essential value to our customers.”

About APS

APS, Arizona’s largest and longest-serving electricity utility, serves more than 989,500 customers in 11 of the state’s 15 counties. With headquarters in Phoenix, APS is the largest subsidiary of Pinnacle West Capital Corporation.


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