Calpine to buy natural gas-fired power plant for $625mn

U.S. US Natural gas well

Calpine Corp. (NYSE: CPN) has agreed to purchase a 1,050 MW combined-cycle power plant in Texas for $625 million, or $595 per kilowatt, from MinnTex Power Holdings LLC, a portfolio company owned by Wayzata Investment Partners LLC.

The Guadalupe plant includes two 525 MW power blocks, each using two GE (NYSE: GE) 7FA combustion turbines, two heat recovery steam generators and one GE steam turbine. The acquisition also includes rights to an advanced development opportunity for a 400 MW quick-start, natural gas-fired peaker, if market conditions warrant.

Calpine expects to close the deal in early 2014 subject to customary closing conditions, antitrust review under the Hart-Scott-Rodino Act, and approval by the Public Utility Commission of Texas.

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