Tri-State Generation and Transmission Association will purchase a 272MW natural gas-fired combined cycle power plant located in Colorado, US, for an undisclosed sum.
The power supplier will purchase the plant by acquiring a 100% stake in the Thermo Co-generation Partnership (TCP) from affiliates of Starwood Energy Group.
The transaction, subject to regulatory approvals, is expected to close in six weeks.
Tri-State has been purchasing 150MW of power from the facility under a ten-year tolling agreement with TCP that started in July 2009.
In addition, TCP is also under contract to provide 122MW of capacity to a third party until 2019.