Message-ID: <4814877.1075844084950.JavaMail.evans@thyme>
Date: Wed, 6 Dec 2000 02:02:00 -0800 (PST)
From: jeffery.fawcett@enron.com
To: steven.harris@enron.com, kevin.hyatt@enron.com, tk.lohman@enron.com, 
	christine.stokes@enron.com, michelle.lokay@enron.com, 
	lorraine.lindberg@enron.com, lindy.donoho@enron.com, 
	susan.scott@enron.com
Subject: New AZ. Power Plant
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Article on groundbreaking of first of [possibly] several new large IPP plan=
ts=20
near Palo Verde...


Pinnacle West buys plant, readies expansion
Pinnacle West Energy, a generation subsidiary of Pinnacle West Capital, has=
=20
bought a 72- MW power station from Sierra Pacific Resources subsidiary Neva=
da=20
Power and plans to add a 500-MW facility at the site.

The purchase of the Harry Allen power station, located 30 miles northeast o=
f=20
Las Vegas, totaled $65.2 million, after adjustments for purchased power=20
commitments, and is part of Sierra Pacific=01,s ongoing divestiture program=
. The=20
sale agreement calls for all power generated by the station to be sold unde=
r=20
contract to Nevada Power through February 2003.

Calling the purchase =01&a strategic link=018 in efforts to increase genera=
tion in=20
the West, Pinnacle  West said that, as demand grows in the region, it inten=
ds=20
to add a 500-MW, gas-fired, combined-cycle unit at its new site.

=01&This is a very important step in our overall growth strategy to remain =
one=20
of the top power producers in the West,=018 Pinnacle West Energy President =
Bill=20
Stewart said. =01&There are tremendous opportunities to expand the capacity=
 at=20
this site, and it=01,s ideally situated to help meet the increasing demand=
=20
through the Southwest.=018  Fueled by natural gas or diesel oil, the Harry =
Allen=20
station currently produces electricity for southern Nevada and surrounding=
=20
markets.

In addition to the Nevada project, Pinnacle West has been actively developi=
ng=20
other generation in the region. The company has set Dec. 19 as the=20
groundbreaking for its 2,120-MW Redhawk Power Plant, the largest of its=20
current power projects. Located near the Palo Verde nuclear plant, 55 miles=
=20
west of Phoenix, the facility will help meet increasing demands for=20
electricity in Arizona and throughout the Southwest, according to Stewart.=
=20
The Redhawk project=01,s first two units are slated to begin commercial=20
operation in the summer of 2002.