Pinnacle West Capital (NYSE:PNW) utility Arizona Public Service (APS) has signed an agreement with Arlington Valley, LLC, a wholly owned subsidiary of Star West Generation, LLC, to contract for 565 MW of capacity from the Arlington Valley combined cycle power plant beginning June 1, 2020 for a total of six years.
APS announced the contract in a Dec. 23 news release.
The move comes after APS completed its 2016 all-source request for proposals (RFP) seeking capacity resources. The company will also conduct RFPs to meet future summer season peak capacity needs for 2021 and beyond with an RFP issued as early as 2017.
The contract is for virtually all the capacity of Arlington Valley, which is located on a 3,000 acre tract approximately 50 miles west of Phoenix, Arizona, near the Palo Verde hub. Arlington Valley is a zero discharge facility, employing modern wastewater treatment system and an evaporation pond.
The plant is designed to run as a base or intermediate load generator and is interconnected to the Hassayampa substation.
Star West is an independent power producer Star West is held by investment funds managed by Highstar Capital. Arizona Public Service serves about 2.7 million people in 11 of Arizona’s 15 counties.