Avista Power said Tuesday it purchased a 20-acre site inLordsburg, NM from TNP Technologies and plans to put a $70 millionpower plant into service on the acreage by early 2000. The terms ofthe sale were not disclosed. The land contains four oldergenerators, which were in the process of being updated. All permitsand licenses will transfer to Avista Power and the transaction isexpected to close within 60 days.

The purchase marks Avista’s physical entrance into the area.”The Desert Southwest is a growing and important market,” said T.M.Matthews, CEO of Avista Corp. “The Lordsburg, NM, facilitypresented an opportunity to enter a new market and to immediatelybegin providing energy to one of the fastest growing regions of thecountry.”

The planned power plant also signifies the continuance of Avista’sdetermination to produce electricity and gas for Avista Energy tomarket. Last December, Washington Water Power, (now called AvistaCorp.) entered into an agreement with Cogentrix Energy to jointlybuild and/or buy interests in the gas-fired, 270 MW Rathdrum facilityin Rathdrum, ID (See Daily GPI, Dec.14,1998). “Gaining ownership and control of both electric andnatural gas production and transportation assets has been at the coreof our regional and national growth initiatives, specifically insupport of Avista Energy,” Matthews said. “Rathdrum and Lordsburg arethe first of many projects to be developed by Avista Power.”

Avista Power has no stated goal as to how many electric assetsit will acquire in 1999, said Susan Nielsen, an Avista spokesman.”It will depend on a number of factors such as price, access togas, and if the area has a need for new generation. Although ourfirst two plants have been in the West, this is not an indicationfor the future. Due to the 110 year history of Washington WaterPower the West is most familiar to us. But we are a nationalpresence and we are looking for the right deals all across NorthAmerica and Canada.”

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