Calpine Corp. has agreed to purchase a 1,050 MW, combined-cycle power plant for $625 million, or about $595 per kW from MinnTex Power Holdings LLC.
The natural gas-fired plant is located in Guadalupe County, 30 miles northeast of San Antonio, Texas.
Located on a 110-acre site, the Guadalupe plant includes two 525 MW generation blocks, each consisting of two GE 7FA combustion turbines, two heat recovery steam generators and one GE steam turbine.
If market conditions allow, the purchase will also include rights to an advanced development opportunity of about 400-MW quick-start, natural gas-fired peaker.
Calpine is expecting to close on the transaction in the first quarter of 2014 and to fund the transaction with cash on hand. The transaction is 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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