Calpine buys Texas power plant

The American independent power generator, Calpine Corporation, has recently purchased a natural gas-fired, combined-cycle power plant in Guadalupe County, Texas.
The facility has a generating capacity of 1,050 megawatts and was bought by MinnTex Power Holdings, LLC for approximately $625 million or $595 per kilowatt. The acquisition was paid for with a $425 million incremental Term Loan B at Calpine Construction Finance Company as well as available cash. Guadalupe Energy Center is situated on a 100-acre site and includes two 525-megawatt generation blocks. Each block has two GE 7FA combustion turbines, two heat recovery steam generators and one GE steam turbine.

“The addition of Guadalupe Energy Center to our fleet at a discount to replacement cost, and at a time when electric demand in ERCOT is increasing and the reserve margin is tightening, demonstrates our commitment to making disciplined capital allocation decisions to drive shareholder value,” said Calpine’s Chief Executive Officer Jack Fusco.

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