Arlington Valley LLC
Arlington Valley is a 600 MW natural gas power plant situated on roughly 3,000 acres, about 50 miles southwest of Phoenix, Arizona. The facility operates under a tolling agreement with an investment-grade utility, providing capacity and electricity, with the agreement extended until October 2031. In 2019, the facility entered into a heat rate call option agreement (HRCO) with another investment-grade counterparty, covering non-summer months through 2025. This strategic partnership ensures efficient energy production and supports long-term operational stability.
Positioned next to the Palo Verde hub, Arlington Valley has the advantage of accessing key energy markets. When not utilized for the HRCO, the facility can sell additional capacity and electricity into the Desert Southwest (DSW) and California Independent System Operator (CAISO) wholesale markets. This proximity to a major hub enhances the facility's ability to meet regional energy demands, offering flexibility in optimizing its output to support the broader energy grid.