Wisconsin Power and Light (WPL), a subsidiary of Alliant Energy (NYSE:LNT), said May 18 that it exercised its option to purchase Riverside Energy Center LLC, which owns the gas-fired Riverside Energy Center, from Calpine Corp. (NYSE:CPN).
Riverside Energy Center is a 600-MW combined cycle facility located in Beloit, Wisc. It began operation in 2004. WPL currently has a purchase power agreement for about 500 MW from Riverside. Under that agreement, WPL has the option to purchase Riverside on or before May 31.
“We exercised our option because we believe purchasing Riverside allows us to better manage our generation fleet to reduce our reliance on market purchases, manage costs for our customers and remain flexible for the future,” said John Larsen, President – WPL.
“We are pleased we were able to work with Wisconsin Power and Light to achieve a mutually successful outcome by providing them a clean, modern and efficient facility needed to serve their customers while realizing value for Calpine that may now be strategically redeployed for the benefit of our shareholders,” said Thad Hill, Calpine COO. “We are also pleased that Wisconsin Power and Light is interested in retaining the current Riverside employees to assure a smooth ownership and operating transition.”
The Wisconsin Public Service Commission approved the approximately $392m purchase in April. The purchase is subject to approval from FERC and under the Hart-Scott-Rodino Act. WPL expects to close this purchase by Dec. 31.