Calpine to Sell Six U.S. Power Plants to LS Power for $1.57 Billion

Researched by Industrial Info Resources (Sugar Land, Texas)--Calpine Corporation (NYSE:CPN) (Houston, Texas) announced on April 18 that it will sell six power plants in the U.S. Southeast and Midwest to LS Power (New York, New York) for $1.57 billion in cash.

The six plants generate 3,498 megawatts (MW) and are in regions where Calpine does not operate many other power stations. The sale includes: Oneta Energy Center, Santa Rosa Energy Center, Carville Energy Center, Columbia Energy Center Cogen, Hog Bayou Energy Center and Decatur Energy Center Cogen. The plants are located in Oklahoma, Florida, Louisiana, South Carolina and Alabama.

Calpine said that the sale of the plants will allow it to better focus on competitive wholesale markets in its key regions. It listed California, Texas and the Mid-Atlantic as its major areas of focus.

After the sale is complete, Calpine will maintain ownership of four natural-gas-fired plants in the U.S. Southeast, with a total generating capacity of 1,738 MW. The company plans to pursue opportunities to find value through these holdings by contract or sale.

The sale is anticipated to be completed in the second quarter of 2014. LS Power has agreed not to trade in Calpine's stock until the transaction is closed.

In February, Calpine completed the purchase of the 1,050-MW Guadalupe Power Station in Texas.

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