Wisconsin Power and Light, a subsidiary of Alliant Energy (NYSE: LNT), has closed on the purchase of Riverside Energy Center LLC, which owned the Riverside Energy Center, from Calpine (NYSE: CPN).
“We are very excited to add the Riverside Energy Center into WPL’s fleet, and the employees there into our WPL family,” said John Larsen , President–WPL, in a Jan. 2 statement. “This purchase is the latest step in the execution of our strategy to balance our generation portfolio in order to manage costs for our customers while remaining flexible for the future.”
“This transaction furthers strategic objectives for Calpine as well as WPL, a longtime partner and valued customer. For Calpine, divesting the Riverside plant allows us to redeploy capital in a way that will enhance long-term value for our shareholders,” said Calpine CEO Jack Fusco. “We are also gratified that the dedicated employees at Riverside will continue to maintain the plant’s operational excellence working for WPL.”
The purchase price was approximately $400m. The Riverside Energy Center is a 600-MW combined-cycle natural gas-fired facility located in Beloit, Wisc. It began operation in 2004 and WPL previously purchased about 500 MW of capacity from the facility.
WPL said last July that its energy plans for the future include the purchase of the Riverside Energy Center and new emissions controls for the coal-fired Edgewater Unit 5 and Columbia Units 1-2. “The plan calls for investing more than $1.4 billion in WPL’s generating fleet over the next five years,” said Larsen at the time. “It provides a cleaner generation fleet that provides flexibility to ensure WPL can manage current and emerging environmental regulations. It also allows us to better manage cost impacts to customers while meeting their energy needs in a safe and reliable manner. We’re able to do this through a combination of investments in our generating fleet as well as some unit retirements.”