Calpine to Purchase Bosque Power Plant for $432 Million, Increasing Size of Texas Portfolio by 800 MW
HOUSTON--(BUSINESS WIRE)-- Calpine Corporation (NYSE: CPN) has agreed to purchase the 800 megawatt power plant owned by Bosque Power Co., LLC, for $432 million plus adjustments, or approximately $540 per kilowatt. The natural gas-fired, combined-cycle plant is located in Central Texas near the unincorporated community of Laguna Park in Bosque County.
"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 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 two generation blocks:
a 250-megawatt block with one natural-gas turbine, one heat-recovery steam generator and one steam turbine that achieved commercial operations in June 2001 and
a 550-megawatt block with two natural-gas turbines that went online in June 2000 as well as two heat-recovery steam generators and one steam turbine that achieved commercial operations in June 2011.
Calpine is targeting a transaction close in early November 2012 and expects to fund the acquisition with cash on hand. The transaction is subject to customary closing conditions and expiration of the waiting period under the Hart-Scott-Rodino Act. No shareholder approval is required.
Calpine Corporation is the largest independent power producer in the U.S., with a fleet of 93 power generation plants representing more than 28,000 megawatts of generation capacity. Last year our plants generated more than 94 million megawatt hours of power for our wholesale customers in 20 states and Canada. Our 91 operating plants as well as two under construction consist primarily of natural gas-fired and renewable geothermal power plants that use advanced technologies to generate power in a low-carbon and environmentally responsible manner. Our modern, clean, efficient and cost-effective fleet stands ready to respond to the increased need for cleaner and more affordable power as the economy recovers, as new environmental rules are implemented and force older, dirtier plants to retire or reduce generation, as variable renewable power generation from wind and solar grows and with it the need for flexible natural gas generation to assure firm supply to the grid, and finally, as natural gas becomes economically competitive with coal as a fuel for power generation. Please visit www.calpine.com to learn more about why Calpine is a generation ahead - today.
In addition to historical information, this release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Words such as "believe," "intend," "expect," "anticipate," "plan," "may," "will" and similar expressions identify forward-looking statements. Such statements include, among others, those concerning expected financial performance and strategic and operational plans, as well as assumptions, expectations, predictions, intentions or beliefs about future events. You are cautioned that any such forward-looking statements are not guarantees of future performance and that a number of risks and uncertainties could cause actual results to differ materially from those anticipated in the forward-looking statements. Please see the risks identified in this release or in Calpine's reports and registration statements filed with the Securities and Exchange Commission, including, without limitation, the risk factors identified in its Annual Report on Form 10-K for the year ended Dec. 31, 2011. These filings are available by visiting the Securities and Exchange Commission's website at www.sec.gov or Calpine's website at www.calpine.com. Actual results or developments may differ materially from the expectations expressed or implied in the forward-looking statements, and Calpine undertakes no obligation to update any such statements.
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