News Flash


Posted on: October 13, 2017

SRP Approves Purchase In Gila Bend

SRP-power plant purchase of 2 blocks


Jeffrey P. Lane, SRP, (602) 236-2500
October 13, 2017

SRP Board Approves Purchase of New Power Resources

Natural Gas Units in Gila Bend will Provide Low-Cost Energy to SRP Customers

Salt River Project’s Board of Directors has approved the purchase of two 550-megawatt natural gas generating units at the Gila River Power Station, located near Gila Bend. SRP is buying Blocks 1 and 2 at the site from CXA Sundevil Power I, and CXA Sundevil Power II Inc. for $330 million.

In a separate motion, the Board approved a purchase power agreement (PPA) that will allow the sale of power from Block 2 to Tucson Electric Power (TEP).  That PPA includes an option for TEP to purchase Block 2 at a future date.

The purchase of Block 1 at the plant will help SRP economically meet system needs and defer planned capital expenditures associated with the construction of new generating assets. 

“The acquisition of Unit 1 at the Gila River Power Station further bolsters SRP’s resource portfolio,” said SRP Deputy General Manager Mike Hummel.  “This purchase represents an attractive economic opportunity for SRP as it is a fraction of the cost to build a new generating facility.”

Hummel added that new natural gas generation further enables SRP to integrate intermittent, renewable resources into its portfolio.

Power Blocks 1 and 2 at the Gila River plant are each combined cycle units comprised of two combustion turbines and two heat recovery steam generators that meet a range of energy needs for SRP customers. 

SRP purchased Block 4 at the Gila River plant in September 2016. The transaction for Blocks 1 and 2 is expected to close by early 2018.

SRP is a community-based, not-for-profit public power utility and the largest provider of electricity in the greater Phoenix metropolitan area, serving more than 1 million customers.

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