By Phoenix Business Journal

Salt River Project will again buy power from a biomass power plant in Snowflake that has undergone an ownership change.

The utility said Wednesday they will buy 13 megawatts of power from Snowflake Power LLC, a subsidiary of the Phoenix-based Najafi Cos., to put in their renewable portfolio.

It is the second time SRP has bought power from the plant, which burns wood and paper waste as a fuel source. The utility terminated its contract with the former owner, White Mountain Power LLC, after what officials said were problems with continuous power operations and getting electricity from the plant.

Arizona Public Service Co., at the time SRP ended its first agreement, agreed to buy all 24 megawatts of power produced at the plant.

Najafi Cos. bought the plant out of bankruptcy from White Mountain Power after that company filed for Chapter 11 bankruptcy in 2010.

⿿This unique renewable energy power plant will not only contribute to SRP⿿s sustainable energy goals, but also responds to the state⿿s Healthy Forest Initiative,⿝ said John Sullivan, SRP⿿s associate general manager of resource management, in a statement.

SRP said the wood and paper mixture, which comes from thinning forests as well as nearby paper mill waste, will be enough to power 6,800 homes. It adds to the utilityâ¿¿s renewable resource portfolio, which is aimed at getting 20 percent of its power from sources such as solar and wind, by 2020.

Copyright 2011 American City Business Journals

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