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Salt River Project to acquire Ariz. gas-fired plant from TransCanada

TransCanada Corp. will sell its 575-MW Coolidge Generating Station in Arizona to Salt River Project.

A subsidiary of Southwest Generation Operating Co. LLC was going to acquire the gas-fired plant for about $465 million, but Salt River Project invoked a right-of-first-refusal provision in the 20-year contract under which it buys power from Coolidge, according to a March 22 filing with the Federal Energy Regulatory Commission.

TransCanada withdrew its FERC application for approval of the Southwest deal (FERC docket EC19-39) and filed a new application to sell the plant to Salt River Project (FERC docket EC19-69).

Shortly after TransCanada and Salt River Project executed the deal for Coolidge, the Navajo Nation backed out of plans to acquire the 2,250-MW Navajo generating station. Salt River Project, which owns a 43% share of the Navajo plant, had announced plans to close the facility by the end of 2019 if it failed to come to terms with the Navajo Nation.