Calpine buys power plant

The North American independent power producer, Calpine Corporation, has signed a deal to purchase a 1,050 megawatt, combined-cycle, natural gas-fired power plant in Guadalupe County, about 30 miles northeast of San Antonio, Texas.
MinnTex Power Holdings sold the plant for $625 million or $595 per kilowatt exclusive of adjustments relating to development rights and working capital. The facility is located on a 110-acre site and includes two 525-megawatt generation blocks. Each contains two GE 7FA combustion turbines, two heat recovery steam generators and one GE steam turbine. If market conditions allow, the deal also comprises of rights to an advanced development opportunity for an approximately 400-megawatt quick-start, natural gas-fired peaker.
The transaction is scheduled to close in early 2014, funded with cash on hand, but is subject to certain customary conditions.
“Guadalupe is an exceptional plant with an outstanding performance record that meets Calpine’s high standards for operational excellence,” said Calpine’s Chief Executive Officer Jack Fusco. “We strongly believe in the potential of the Texas market as electric demand increases and reserve margins tighten. Acquiring this modern, flexible and efficient plant in ERCOT’s south zone at a discount to replacement cost furthers our strategic objectives in this key market.”
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