TucsonElectric Power Co. completed the first of a to acquire a50.95% undivided stake in Springervilleunit 1 in Apache County, Ariz., according to a Sept. 26 notice to FERC.
The commission conditionally the transaction on Sept. 12. Atclosing, the $85 million purchasewould allow the Fortis Inc.subsidiary to settle and release assertedclaims related to the coal-fired facility.
In the first part of the deal, Tucson Electric acquired allremaining stake it does not own in trusts that hold the interests of AlternaSpringerville LLC and LDVF1 TEP LLC in Springerville unit 1. The second part,involving the dissolution of the trusts and the distribution of the feeinterests in the 424.8-MW unit directly to Tucson Electric, remains pending.
The company said it will file another notice with FERC uponthe completion of the second stage. (EC16-96)
Completion of the deal also will satisfy a in Tucson Electric'srate case settlement. Of the allowed $81.5 million rate increase, $15.2 millionis contingent upon the unit 1 acquisition.