SAN DIEGO, Feb. 28, 2013 /PRNewswire/ -- Sempra U.S. Gas & Power today announced it has completed the sale of one 625-megawatt (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 Dec. 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 is one of Arizona's largest utilities, and we could not be more pleased to partner with them in the ownership and operation of Mesquite Power," said Jeffrey W. Martin, president and CEO of Sempra U.S. Gas & Power. "The proceeds from this transaction will be used to support our growth initiatives, while joint ownership of the facility has the added benefit of reducing our exposure to the merchant power markets."
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.Mesquite Power, which has been in operation since 2003 in Arlington, Ariz., is among the nation's cleanest and most efficient gas-fired power plants. It was the first power plant in Arizona to receive a Voluntary Protection Programs award, the highest recognition for exemplary safety performance, in 2009. The plant recently was awarded Voluntary Protection Programs recertification for 2012 to 2015. Sempra U.S. Gas & Power, LLC is a leading developer of renewable energy and natural gas solutions. The company 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 company is a subsidiary of Sempra Energy (NYSE: SRE), a Fortune 500 energy services holding company with 2012 revenues of approximately $10 billion. The Sempra Energy companies' nearly 17,000 employees serve more than 31 million consumers worldwide. For more information, visit www.SempraUSGP.com. This press release contains statements that are not historical fact and constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements can be identified by words like "believes," "expects," "anticipates," "intends," "plans," "estimates," "may," "will," "would," "could," "should," "potential," "target," "outlook", "depends," "pursue" or similar expressions, or discussions of guidance, strategies, plans, goals, initiatives, objectives or intentions. Forward-looking statements are not guarantees of performance. They involve risks, uncertainties and assumptions. Future results may differ materially from those expressed in the forward-looking statements. Forward-looking statements are necessarily based upon various assumptions involving judgments with respect to the future and other risks, including, among others: local, regional, national and international economic, competitive, political, legislative and regulatory conditions and developments; actions by the California Public Utilities Commission, California State Legislature, Federal Energy Regulatory Commission, U.S. Department of Energy, Nuclear Regulatory Commission, California Energy Commission, California Air Resources Board, and other regulatory, governmental and environmental bodies in the United States and other countries where the company does business; capital market conditions, including the availability of credit and the liquidity of investments; inflation, interest and exchange rates; the impact of benchmark interest rates, generally the U.S. Treasury bond and Moody's A-rated utility bond yields, on the California utilities' cost of capital; the timing and success of business development efforts and construction, maintenance and capital projects, including risks inherent in the ability to obtain, and the timing of the granting of, permits, licenses, certificates and other authorizations; energy markets, including the timing and extent of changes and volatility in commodity prices; the availability of electric power, natural gas and liquefied natural gas, including disruptions caused by failures in the North American transmission grid, pipeline explosions and equipment failures; weather conditions, natural disasters, catastrophic accidents, and conservation efforts; risks inherent in nuclear power generation and radioactive materials storage, including catastrophic release of such materials; risks posed by decisions and actions of third parties who control the operations of investments in which the company does not have a controlling interest; wars, terrorist attacks and cyber security threats; business, regulatory, environmental and legal decisions and requirements; expropriation of assets by foreign governments and title and other property disputes; the status of deregulation of retail natural gas and electricity delivery; the inability or determination not to enter into long-term supply and sales agreements or long-term firm capacity agreements; the resolution of litigation; and other uncertainties, all of which are difficult to predict and many of which are beyond the control of the company. These risks and uncertainties are further discussed in the reports that Sempra Energy has filed with the Securities and Exchange Commission. These reports are available through the EDGAR system free-of-charge on the SEC's website, www.sec.gov , and on the company's website at www.sempra.com . These forward-looking statements speak only as of the date hereof, and the company undertakes no obligation to update or revise these forecasts or projections or other forward-looking statements, whether as a result of new information, future events or otherwise. Sempra U.S. Gas & Power, LLC is not the same company as the utility, San Diego Gas & Electric (SDG&E) or Southern California Gas Company (SoCalGas), and Sempra U.S. Gas & Power, LLC is not regulated by the California Public Utilities Commission. SOURCE Sempra U.S. Gas & Power