SAN ANTONIO, TX-Calpine Corp. of Houston says it has agreed to acquire a 1,050-megwatt combined cycle power plant from Minnesota-based MinnTex Power Holdings LLC for $625 million.
The natural gas-fired plant is in Guadalupe County, 30 miles outside of the city of San Antonio, according to the Houston Business Journal.
“Guadalupe is an exceptional plant with an outstanding performance record that meets Calpine's high standards for operational excellence,” Calpine CEO Jack Fusco states. “We strongly believe in the potential of the Texas market as electric demand increases and reserve margins tighten. Acquiring this modern, flexible and efficient plant in ERCOT's south zone at a discount to replacement cost furthers our strategic objectives in this key market.”
The transaction is expected to close during the first quarter of 2014. Calpine intends to fund the deal with cash on hand. See story in the Houston Business Journal.
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