Calpine: More Retail Acquisitions "Could Make Sense," But Not "Super High Priority"

Calpine could acquire more retail energy suppliers in addition to Champion Energy, but such acquisitions are not very high on its priority list.

"More acquisitions could make sense," CEO Thad Hill said on an earnings call. "I have to tell you that that's not something that is super high on our priority list. We have a new business. We won't close on the business until later this quarter, and we need to learn a lot about it ... So, certainly, future deals are possible, but I'll also say that, first and foremost, we need to make sure that we do a good job with what we already have."

Calpine said that Champion expects to serve 22 million megawatt-hours of load this year, approaching 20% of Calpine's generation, with Champion's load being primarily commercial and industrial. Champion serves nearly 19,000 commercial and industrial customers, or approximately 2 million residential customer equivalents. Champion serves 100,000 residential customers, Calpine said.

Calpine also confirmed that it intends to operate Champion as a standalone business and does not anticipate Champion's management team and business model will change as a result of Calpine's ownership. However, Calpine said that it expects generation from its fleet to serve a "meaningful" amount of Champion's retail load.