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Tucson Electric wraps purchase of 550-MW power block at Ariz. gas plant

Tucson Electric Power Co. completed the acquisition of the 550-MW power block 2 of the Gila River Project from the Salt River Project.

The deal also involved the transfer of a 25% undivided co-ownership interest in common assets of the 2,212-MW natural gas-fired power plant in Maricopa County, Ariz. Tucson Electric and its affiliate UNS Electric Inc., both subsidiaries of Fortis Inc., already own the Gila River plant's power block 3. Salt River operates the plant.

The companies have a tolling agreement in place which gives Tucson Electric the rights to the full output of power block 2 from May 2, 2018, to May 2, 2038. Tucson Electric also has the right to exercise an option to purchase the unit during the first three years of the tolling agreement, which it is now doing.

The transaction was completed on Dec. 27, 2019. (FERC docket EC19-100)