October 01, 2015 10:04 AM Eastern Daylight Time
HOUSTON–(BUSINESS WIRE)–Calpine Corporation (NYSE:CPN) today closed the previously announced acquisition of leading retail electric provider Champion Energy Marketing, LLC.
Champion Energy serves primarily commercial and industrial customers, in addition to approximately 115,000 residential customers, in 10 states that closely overlap and complement Calpine’s wholesale power generation presence in the Texas, Mid-Atlantic and Northeastern U.S. power markets. Champion Energy will remain headquartered in Houston and will continue to operate under the highly regarded Champion Energy brand, as exemplified by its top ranking in 2015 by J.D. Power for residential customer satisfaction in Texas for the fifth time, including from 2010 to 2013.
“The addition of Champion Energy is an important step in our concerted effort to create more channels for our wholesale power by getting closer to customers,” said Calpine’s Executive Vice President and Chief Commercial Officer Trey Griggs. “We look forward to building upon the success of the Champion Energy team as we integrate and grow the platform. We are particularly excited to welcome the talented Champion Energy employees to the Calpine team.”
“The Champion Energy team is thrilled to be joining the Calpine team and to be in a position to meaningfully grow the retail business and better serve our customers with the support of Calpine’s modern, clean and efficient fleet of power generation facilities,” said David Tudor, Champion Energy’s President and Chief Executive Officer, who will remain in his leadership role and report to Griggs.
Calpine purchased the business from a subsidiary of Crane Champion Holdco LLC, which owned a 75% interest, and from EDF Trading North America, which owned a 25% interest, for $240 million plus working capital adjustments. The transaction was funded with cash on hand.
Calpine Corporation is America’s largest generator of electricity from natural gas and geothermal resources. Our fleet of 83 power plants in operation or under construction represents nearly 27,000 megawatts of generation capacity. Through wholesale power operations and our retail business, Champion Energy, we serve customers in 19 states and Canada. We specialize in developing, constructing, owning and operating natural gas-fired and renewable geothermal power plants that use advanced technologies to generate power in a low-carbon and environmentally responsible manner. Our clean, efficient, modern and flexible fleet is uniquely positioned to benefit from the secular trends affecting our industry, including the abundant and affordable supply of clean natural gas, stricter environmental regulation, aging power generation infrastructure and the increasing need for dispatchable power plants to successfully integrate intermittent renewables into the grid. Please visit www.calpine.com to learn more about why Calpine is a generation ahead – today, or visitwww.championenergyservices.com for details on Champion’s award-winning retail electric services.
Houston-based Champion Energy Services is one of the fastest-growing and largest retail electric providers (REPs) in the nation and one of the top REPs never to have been affiliated with a utility. Champion Energy currently serves residential, governmental, commercial and industrial customers in deregulated electric energy markets across the U.S. The company currently serves more than 2 million residential customer equivalents, with a peak load near 4,000 megawatts.