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20-Acre Power Plant Commands $288.5M

CASA GRANDE, AZ-In an effort to pay down debt, Reliant Resources Inc. agrees to sell the 588-megawatt Desert Basin plant at 1872 N. Burris Rd. Houston-based Reliant is now looking purchase an 81% interest in Texas Genco Holdings Inc.

By Diana M. Rodriguez | Updated on July 13, 2003

CASA GRANDE, AZ-Snatching up a power plant, its infrastructure and technology, Salt River Project Agricultural Improvement and Power District (SRP) has purchased the Desert Basin plant from Reliant Resources Inc. The 20-acre plant sold for $288.5 million.

Located at 1872 N. Burris Rd. off the Maricopa-Casa Grande Highway, the Desert Basin is a 588-megawatt plant (according to industry sources, one megawatt powers approximately 750 to 1,000 households). The sale marks Reliant’s first disposition of the year, according to a company spokesman, and is part of a strategy to prepay indebtedness and possibly acquire new assets.

“We’re consistently reviewing our assets,” the spokesman tells GlobeSt.com, adding that Reliant currently is in a “restructuring” phase. “We sold because SRP is an ideal fit for the community.”

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