By John G. Edwards, Las Vegas Review-Journal Knight Ridder/Tribune Business News
Apr. 28--Pinnacle West Capital Corp. of Phoenix says it has received proposals to buy its 75 percent stake in the Silverhawk Power Station.
"It would not have any impact on our 25 percent ownership," said
water authority spokesman Vince Alberta.
Alan Bunnell, a Pinnacle West spokesman, emphasized that the company only
said that it received bids that could result in a sale this year, not that it
would sell the plant.
"We have a fiduciary responsibility to review any proposal that could
bring value to our shareholders and our Arizona customers," Bunnell said.
Arizona Public Service Co. is a subsidiary of Pinnacle West. Silverhawk, which
started operations in May 2004, is owned by another subsidiary, Pinnacle West
Energy.
Silverhawk sells power on the wholesale market as a so-called merchant plant.
Pinnacle West estimated that it would recognize a loss if it sold the plant
this year but said it would invest after-tax sale proceeds of around $200
million to $215 million.
Pinnacle West expects the plant to become profitable, but it is projected to
have an annual after-tax loss of $19 million to $23 million this year and next.
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