The company, a division of Phoenix-based Pinnacle West Capital Corp., is adding two new facilities and is expanding its existing facilities in Phoenix. Pinnacle announced Tuesday that it will begin construction on a 2,120-megawatt power plant about 50 miles west of Phoenix in mid-December.

The new technologically advanced, four-unit combined-cycle Redhawk Power Plant, is part of the company's effort to compete in deregulated energy markets in Arizona, California and other Western states. The facility will be built in 530-megawatt increments, with the first unit coming online in the summer of 2003, and final completion of all units expected by 2007. The plant will be powered by natural gas. Construction cost is estimated at $1 billion.

Additionally, Pinnacle is upgrading the capacity of it existing West Phoenix Power Plant, adding two modern, combined-cycle generators, fueled by natural gas, that will increase output by 750 megawatts--enough to service 150,000 homes. The first 120-megawatt upgrade is scheduled for completion by next summer, and the second upgrade of 530 megawatts will be online by the summer of 2003.