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APS completes purchase of stake in Four Corners plant from El Paso Electric

Arizona Public Service Co. on July 6 closed itsacquisition ofEl Paso Electric Co.'s7% interest in FourCorners units 4 and 5, according to a Form 8-K filed July 7.

Prior to the transaction's close, APS transferred itsacquired right, title and interest in the facility to its affiliate, 4CAcquisition LLC, or 4CA. APS parent company agreed toguarantee 4CA's obligations under the agreement.

El Paso Electric was paid $4.2 million in cash for thetransaction, subject to post-closing adjustments. After the transaction, whichwas approved by FERCin December 2015, El Paso Electric no longer owns any coal-fired generation.

The 7% stake in the Four Corners plant represents roughly108 MW of capacity. According to SNL Energy data, the coal-fired plant has acurrent operating capacity of 1,540 MW.