HOUSTON–(BUSINESS WIRE) –Calpine Corporation (NYSE:CPN) today completed the acquisition from Bosque Power Company LLC, of a natural gas-fired, combined-cycle power plant located in Bosque County, Texas.
Calpine purchased the plant, which has generating capacity of 800 megawatts, for $432 million plus adjustments, or $540 per kilowatt.
“Bosque is a modern combined-cycle plant making it a good fit for our clean and efficient Texas fleet. I am pleased to welcome our new employees at Bosque to the Calpine team,” said President and Chief Executive Officer Jack Fusco. “This acquisition represents Calpine’s commitment to continue to be part of the solution to help meet Texas’ need for reliable and affordable wholesale energy as demand grows, ERCOT’s reserve margin shrinks, and the state looks to transition from a market structure insufficient to incentivize meaningful new construction to a market structure that assures reliability well into the future.”
Upon purchase, Calpine changed the name of the merchant plant to the Calpine Bosque Energy Center. The 280-acre site is located near the unincorporated community of Laguna Park in Central Texas.
The Bosque Energy Center comprises two generation blocks:
- a 250-megawatt block with one natural-gas turbine, one heat-recovery steam generator and one steam turbine that achieved commercial operations in June 2001 and
- a 550-megawatt block with two natural-gas turbines that went online in June 2000 as well as two heat-recovery steam generators and one steam turbine that achieved commercial operations in June 2011.