Salt River Project is currently in negotiations to purchase a share of the coal-fired Navajo Generating Station in Arizona from the Los Angeles Department of Water and Power (LADWP), according to a report from the Arizona Republic.
Currently, SRP owns 21.7 percent of the facility and LADWP owns 21.2 percent, according to the facility’s website. Other owners of the facility include the U.S. Bureau of Reclamation, Arizona Public Service Co., NV Energy (NYSE: NVE) and Tucson Electric Power.
According to the Republic, the deal could be worth about $189 million, but the price could be lower because the LADWP is looking to quickly sell its stake in the plant. The Navajo Nation, which is currently considering legislation to extend the lease for the facility, stated last month that LADWP was negotiating with SRP.
Los Angeles Mayor Antonio Villaraigosa recently said he planned to sign papers soon to stop using power from the Navajo Generating Station by 2015. Villaraigosa, who made his comments at an event sponsored by UCLA’s Institute of the Environment and Sustainability, said the agreements would stop all coal-fired power use in Los Angeles by 2025.
SRP also recently purchased a share of the Mesquite Power natural gas-fired power plant in Arizona for $371 million from Sempra U.S. Gas and Power.
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