APS, PPL wrap up powerplant sale

Business Journal
May 13, 2005

Arizona Public Service Co. (APS) and PPL Corp. have concluded their transaction and APS has a new 450-megawatt powerplant near Coolidge and PPL has about $190 million in additional cash in its bank accounts.

APS said Friday that approval from the Federal Energy Regulatory Commission arrived last week, and that was the last hurdle in a process first announced in June 2004.

The new Pinal County plant, known as the Sundance Generating Station, is a natural-gas fired facility with 10 quick-start combustion turbines capable of providing enough electricity for about 225,000 homes.

The new plant, along with 1,000 megawatts of long-term peaking capacity APS will be seeking through a competitive bidding process, is expected to meet the company's resource needs through 2007.

Allentown, Pa.-based PPL (NYSE: PPL) said it will take a charge of $47 million after taxes in the second quarter related to the transaction, but in the long term the sale is expected to reduce debt and increase liquidity.

APS is a Phoenix-based electric utility serving more than 989,000 customers in 11 Arizona counties. It is the largest subsidiary of Phoenix-based Pinnacle West Capital Corp. (NYSE: PNW).

For more: www.aps.com, www.pinnaclewest.com.