Star West Generation
Star West Generation LLC is an innovative independent power producer focused on clean, reliable, and efficient power generation serving North American markets. We were established in 2011 with the strategic acquisition of our two anchor assets located in the Desert Southwest: the Arlington Valley and Griffith Energy facilities.
Ownership in Star West is held by investment funds managed by Highstar Capital, a premier infrastructure investment firm with over a decade of experience in the power generation sector. With solid financial backing, a proven leadership team, and best-in-class operations, Star West is well positioned to play a significant role in the future of the power markets of the western United States.
Star West’s power plants are positioned for long-term success in their respective markets. Both the Arlington Valley and Griffith Energy facilities serve the rapidly growing electricity markets of the Desert Southwest (Arizona, New Mexico, and southern Nevada) as well as California. Both plants also enjoy direct transmission connections to major electricity trading hubs. With their modern, clean-burning natural gas turbine technologies and “combined cycle” configurations, Arlington Valley and Griffith are among the most desirable sources of power in the markets they serve. Looking ahead, as energy efficiency, operational flexibility and environmental footprint become even more critical considerations in the coming years, we believe Star West will be in an even stronger position as a supplier of choice in meeting the burgeoning demand for electricity in the western United States.
We consider innovation be one of our core strengths at Star West. We pride ourselves in “thinking outside the box” and taking new approaches to old problems. Our management team is highly experienced in optimizing plant operations, mitigating operational and financial risks, structuring commercial contracts, and strategically deploying capital. Applying this skill set, we are able to add value for the benefit of our customers – and if our customers are successful, we are successful.
Star West’s financial strength is derived both from our physical assets, as well as our contractual assets. We have invested in excess of $50 million in plant maintenance and capital upgrades under our ownership. This proactive strategy has helped establish the Arlington Valley and Griffith plants as among the most proven, efficient, and reliable generation facilities in the entire Desert Southwest region. In addition, Star West enjoys predictable and stable cash flows with virtually no commodity exposure under our existing tolling agreements with three of the largest load serving utilities in the western United States. Our primary focus is serving current and future customers under long-term supply contracts and, hence, our financial future will not be dictated by near-term volatility of energy commodity prices. We are, however, well positioned to compete and realize financial upside from merchant transactions around our uncommitted capacity at the Arlington Valley and Griffith Energy plants as those opportunities arise.
Poised for Growth
Star West has established a solid foundation on which to grow the company through further strategic acquisitions. Our existing platform, with its modern technology footprint and existing power purchase agreements, represent an ideal cornerstone on which to build the business. In conjunction with our owner, Highstar Capital, we are actively pursuing opportunities to grow our portfolio with assets that are complementary to our existing plants – operationally and commercially – and situated in markets in which the long-term supply/demand outlook presents opportunities for companies like Star West to apply our core strengths to create value.