Article on groundbreaking of first of [possibly] several new large IPP plants 
near Palo Verde...


Pinnacle West buys plant, readies expansion
Pinnacle West Energy, a generation subsidiary of Pinnacle West Capital, has 
bought a 72- MW power station from Sierra Pacific Resources subsidiary Nevada 
Power and plans to add a 500-MW facility at the site.

The purchase of the Harry Allen power station, located 30 miles northeast of 
Las Vegas, totaled $65.2 million, after adjustments for purchased power 
commitments, and is part of Sierra Pacific,s ongoing divestiture program. The 
sale agreement calls for all power generated by the station to be sold under 
contract to Nevada Power through February 2003.

Calling the purchase &a strategic link8 in efforts to increase generation in 
the West, Pinnacle  West said that, as demand grows in the region, it intends 
to add a 500-MW, gas-fired, combined-cycle unit at its new site.

&This is a very important step in our overall growth strategy to remain one 
of the top power producers in the West,8 Pinnacle West Energy President Bill 
Stewart said. &There are tremendous opportunities to expand the capacity at 
this site, and it,s ideally situated to help meet the increasing demand 
through the Southwest.8  Fueled by natural gas or diesel oil, the Harry Allen 
station currently produces electricity for southern Nevada and surrounding 
markets.

In addition to the Nevada project, Pinnacle West has been actively developing 
other generation in the region. The company has set Dec. 19 as the 
groundbreaking for its 2,120-MW Redhawk Power Plant, the largest of its 
current power projects. Located near the Palo Verde nuclear plant, 55 miles 
west of Phoenix, the facility will help meet increasing demands for 
electricity in Arizona and throughout the Southwest, according to Stewart. 
The Redhawk project,s first two units are slated to begin commercial 
operation in the summer of 2002.