PPL sells local power plant to Pinnacle West

The Arizona Republic
Staff Reports, Associated Press Writer
June 03, 2004

PPL said the sale proceeds will be used to pay off debt.

In a press release Tuesday, PPL said it would take a one-time, non-cash charge of about $47 million, or 25 cents a share, either in 2004 or 2005, in connection with the transaction. The timing of the charge depends on the status of regulatory approvals.

In addition, the deal is expected to enhance PPL's cash flow position and be accretive to earnings in 2005 and in subsequent years.

The sale of the 450-megawatt plant is subject to various state and federal regulatory approvals, and is expected to close in the first quarter of 2005 before charges.

In a separate release, APS said the acquisition from PPL is the result of its search for long-term generating resources to meet an existing shortfall in peak capacity.

According to both companies, the deal is pending regulatory approvals by the Arizona Corporation Commission, the Federal Energy Regulatory Commission, the U.S. Department of Justice and the Federal Trade Commission.

The Sundance plant has electrical capacity for about 225,000 homes.