TransCanada Corp. signed a deal to sell the 575-MW Coolidge natural gas-fired power facility in Pinal County, Ariz., to a subsidiary of Southwest Generation Operating Co. LLC for approximately US$465 million.

The sale, along with about C$1 billion in reimbursement for its expenses on the Coastal GasLink project, would result to the realization of C$1.7 billion that the Canadian company plans to use to fund its near-term capital program.

The company is "well-positioned to fund [C]$36 billion of commercially secured projects, approximately [C]$10 billion of which are expected to enter service by early 2019 with the remainder to follow through 2023," TransCanada President and CEO Russ Girling said in a Dec. 17 release.

The Coolidge plant holds a 20-year power purchase agreement with Salt River Project that is set to expire in May 2031. Salt River Project has a right of first refusal on a sale to a third party under the terms of the agreement. According to S&P Global Market Intelligence, the facility had a net generation of 167,266 MWh with a capacity factor of 3.34%, based on the summer operating data of 2017.

Southwest Generation Operating is an independent power producer headquartered in Denver.