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Arizona-based utility Tucson Electric Power (TEP) says it is planning to modify its power generation portfolio by receiving a smaller percentage of output from the coal-fired Springerville Generating Station, potentially purchasing additional natural gas-fired resources in Arizona and continuing its expansion of renewable resources.

As part of the company's resource-diversification strategy, TEP issued a request for proposals for non-coal-fired generating capacity. After evaluating several bids, TEP entered into exclusive negotiations with Entegra Power Group LLC to purchase a 550 MW gas-fired combined-cycle generating unit at the Gila River Generating Station in Gila Bend, Ariz.

According to TEP, this gas-fired resource and continued expansion of renewable resources will help the company continue to improve its emissions profile. The utility says that in 2012, more than 5% of its total retail sales were generated by renewable resources.

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