Calpine Corp. (NYSE: CPN) on Feb. 1 asked the Public Utility Commission of Texas for approval for its Pasadena Cogeneration LP subsidiary to buy 50% of Cogen, a 750-MW, combined-cycle, gas-fired facility.
Currently, 100% of Cogen is owned by Pasadena Statutory Trust out of Connecticut. The trust’s interests are 50% owned by PMCC Pasadena Investment LP and 50% by MetLife Capital Credit LP. The facility is currently leased to and operated by Pasadena Cogeneration, the Calpine subsidiary that now wants to buy 50% of the facility.
After this transaction, Pasadena Cogeneration would own 50% of the plant, and MetLiife Capital Credit would own 50%, still on behalf of the Pasadena Statutory Trust. Pasadena Cogeneration would still have a lease on the 50% owned by MetLife and continue as plant operator.
The Cogen plant is known as the Pasadena Facility and is located in Harris County, Texas, in the Electric Reliability Council of Texas region and interconnecting into the CenterPoint Energy transmission system.
This deal is scheduled to close by June 30 of this year.