Calpine to Acquire 800 MW Plant in Texas

Calpine Corporation announced this morning that it has agreed to purchase an 800 megawatt power plant in Central Texas owned by Bosque Power Co., LLC, for $432 million plus adjustments, or approximately $540 per kilowatt.

The natural gas-fired, combined-cycle plant is located in Central Texas near the unincorporated community of Laguna Park in Bosque County.

"Bosque is a modern combined-cycle plant making it a good fit for our clean, efficient fleet while increasing our presence in ERCOT's north zone consistent with our strategy to boost capacity in Texas as electric demand rises and reserve margins tighten," said Calpine President and Chief Executive Officer Jack Fusco. "The Bosque acquisition presents a great opportunity for Calpine to add generation capacity at an important time in the evolution of one of our core markets and at a discount to replacement cost."

Upon purchase, Calpine will change the name of the merchant plant to the Calpine Bosque Energy Center. The 280-acre site includes 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.

Calpine is targeting a transaction close in early November 2012 and expects to fund the acquisition with cash on hand.