Wisconsin Power and Light Company (WPL) announced it has completed the acquisition of the Riverside Energy Center from Calpine Corporation (NYSE: CPN) for approximately $400 million.
Located in Beloit, Wisconsin, the Riverside Energy Center is a 600 MW combined cycle natural gas-fired power plant that began operation in 2004.
Prior to the closing of the acquisition, WPL was engaged in a power purchase power agreement with Calpine for approximately 500 MW from the Riverside facility. Under that agreement, WPL had the option to purchase the plant if it exercised the opportunity on or before May 31, 2012.
In April 2012 WPL received approval for the purchase of Riverside from the Public Service Commission of Wisconsin, followed by clearance from the Federal Energy Regulatory Commission (FERC) in June.
“We are very excited to add the Riverside Energy Center into WPL’s fleet, and the employees there into our WPL family,” said WPL President, John Larsen in a statement. “This purchase is the latest step in the execution of our strategy to balance our generation portfolio in order to manage costs for our customers while remaining flexible for the future.”
WPL, a subsidiary Alliant Energy (NYSE:LNT), provides electric service to approximately 459,000 customers across central and southern Wisconsin.