(Source: Business Wire)
APS announced it has received notice from Starwood Energy Group Global,
LLC that it is terminating the long-term purchase power agreement the
two companies signed in May 2009. This ends plans for Starwood Solar I,
the 290-megawatt concentrating solar plant (CSP), which was to be
located in the Harquahala Valley, 75 miles west of Phoenix.
"APS remains committed to solar energy and we intend to aggressively
respond to this development as we stay on track with our plans to
increase the amount of renewable energy we provide to customers," said
Don Robinson, President of APS.
Starwood Solar I was the second large-scale solar project announced by
APS in the last 19 months. The first, Solana, continues to move forward.
Financing for the 280-megawatt CSP plant is expected to be announced in
the first half of 2010. Solana will be built 70 miles southwest of
Phoenix, near Gila Bend, Ariz.
APS understands that after the major subcontractor agreements were
negotiated, the size and the final risk profile of the engineering,
procurement and construction contract, among other factors, were the
reasons Lockheed Martin decided not to go forward.
Lockheed Martin was the engineering, procurement and construction firm
that partnered with Starwood to develop the project.
As work begins on replacing the energy from Starwood Solar I, APS
expects to announce before the end of the year the results of two
current solicitations for renewable energy: one for small-scale
generation projects and one for distributed generation.
APS, Arizona's largest and longest-serving electricity utility, serves
more than 1.1 million customers throughout the state. With headquarters
in Phoenix, APS is the largest subsidiary of Pinnacle West Capital Corp.
(NYSE: PNW).
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