Calpine Corporation says they have agreed to purchase an 800 megawatt power plant owned by Bosque Power Co., LLC, for US$432 million plus adjustments. The natural gas-fired is a combined-cycle plant, located in Central Texas in Bosque County. Calpine Corporation is the largest independent power producer in the U.S.
“Bosque is a modern combined-cycle plant making it a good fit for our clean, efficient fleet while increasing our presence in ERCOT’s north zone consistent with our strategy to boost capacity in Texas as electric demand rises and reserve margins tighten,” said President and Chief Executive Officer of Calpine, Jack Fusco. “The Bosque acquisition presents a great opportunity for Calpine to add generation capacity at an important time in the evolution of one of our core markets and at a discount to replacement cost.”
Upon purchase, Calpine will change the name of the merchant plant to the Calpine Bosque Energy Center. The 280-acre site includes a 250-megawatt generation block with one natural-gas turbine, and a 550-megawatt block with two natural-gas turbines.
Calpine is targeted to close the transaction close in early November, 2012 and expects to fund the acquisition with cash on hand.