LS power acquires 3500 MW of Midwest generation from Calpine Corp

• 10 years ago (2014-04-21)
• Junior Isles

North America 1021

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US power infrastructure firm, LS Power Equity Advisors LLC (LS Power), has announced that it has signed an agreement to acquire approximately 3500 MW of generation capacity from Calpine Corp. for $1.57 billion in cash.

The six plants are combined-cycle gas-fired generation facilities located in the South-eastern US, two of the plants being sold are in Alabama, with one each in Oklahoma, Louisiana, Florida and South Carolina.

The plants are Carville Energy Center, St. Gabriel, Hog Bayou Energy Center, Mobile, Columbia Energy Center, Calhoun County, Oneta Energy Center, Coweta, Decatur Energy Center, Decatur and Santa Rosa Energy Center, Pace.

Calpine said it plans to use proceeds to pay down debt, buy back shares and potentially buy new generation. Calpine is consolidating its business back to its three main power markets—Texas, California and the mid-Atlantic.

"We are pleased to assume ownership of this portfolio of power plants," said Paul Segal, chief executive officer of LS Power. "The quality of the assets, the outstanding operational track record of the facilities and the skilled plant personnel were all important factors in our decision.”

The transaction is expected to close in by the second quarter of 2014, accommodating necessary regulatory approvals and third-party consents.