SAN DIEGO, May 19, 2005 (PRIMEZONE) -- Sempra Generation, a subsidiary of Sempra Energy (NYSE:SRE), today announced it has entered into an agreement to purchase Reliant Energy's 50-percent interest in El Dorado Energy, a 480-megawatt (MW) natural gas fired, combined-cycle power plant in Boulder City, Nev., for a total value of $132 million. The payment to Reliant Energy, net of project debt and closing adjustments, is expected to be approximately $75 million.
"The acquisition of the second half of the El Dorado Energy facility is a natural extension for Sempra Generation, because the plant is located in the heart of the southwestern U.S. marketplace, an area where we have an established presence," said Michael R. Niggli, president of Sempra Generation. "Since El Dorado Energy commenced operations in May 2000, Sempra Generation's power assets have grown from that initial 240 megawatts to more than 3,800 megawatts in Nevada, Arizona, California, Texas and Mexico."
Sempra Generation and Reliant Energy originally announced their joint 50-50 ownership in the El Dorado Energy project in 1997.
The plant is located about 40 miles southeast of Las Vegas and has unrestricted access to multiple power markets. In addition to providing clean, efficient energy to the Southwest markets, El Dorado Energy also is equipped with a 100-kilowatt solar field, comprised of 256 panels that track the sun's path through the Nevada sky.
Sempra Generation develops, acquires, operates and maintains power plants and energy infrastructure for competitive markets.
Sempra Energy, based in San Diego, is a Fortune 500 energy services holding company with 2004 revenues of $9.4 billion. The Sempra Energy companies' more than 13,000 employees serve more than 10 million customers in the United States, Europe, Canada, Mexico, South America and Asia.
This press release contains statements that are not historical fact and constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. When the company uses words like "believes," "expects," "anticipates," "intends," "plans," "estimates," "may," "would," "should" or similar expressions, or when the company discusses its strategy or plans, the company is making forward-looking statements. Forward-looking statements are not guarantees of performance. They involve risks, uncertainties and assumptions. Future results may differ materially from those expressed in the forward-looking statements. Forward-looking statements are necessarily based upon various assumptions involving judgments with respect to the future and other risks, including, among others: local, regional, national and international economic, competitive, political, legislative and regulatory conditions and developments; actions by the California Public Utilities Commission, the California State Legislature, the California Department of Water Resources, the Federal Energy Regulatory Commission and other regulatory bodies in the United States and other countries; capital markets conditions, inflation rates, interest rates and exchange rates; energy and trading markets, including the timing and extent of changes in commodity prices; the availability of natural gas; weather conditions and conservation efforts; war and terrorist attacks; business, regulatory, environmental, and legal decisions and requirements; the status of deregulation of retail natural gas and electricity delivery; the timing and success of business development efforts; the outcome of litigation; and other uncertainties, all of which are difficult to predict and many of which are beyond the control of the company. These risks and uncertainties are further discussed in the company's reports filed with the Securities and Exchange Commission that are available through the EDGAR system without charge at its Web site, www.sec.gov and on the company's Web site, www.sempra.com.
Sempra Generation is not the same company as the utilities SDG&E/SoCalGas, and it is not regulated by the California Public Utilities Commission.