Calpine to buy power plant south of San Marcos

Dec 3, 2013
Austin Business Journal

Houston-based Calpine Corp. has agreed to purchase a 1,050-megawatt, combined-cycle power plant for $625 million in Guadalupe County, just south of San Marcos

Calpine is acquiring the natural-gas fired power plant near Seguin from MinnTex Power Holdings LLC in Minnesota

“Guadalupe is an exceptional plant with an outstanding performance record that meets Calpine’s high standards for operational excellence,” Calpine CEO Jack Fusco said in a statement. “We strongly believe in the potential of the Texas market as electric demand increases and reserve margins tighten. Acquiring this modern, flexible and efficient plant in ERCOT’s south zone at a discount to replacement cost furthers our strategic objectives in this key market.”

Located on a 110-acre site, the Guadalupe plant includes two 525-megawatt generation blocks, each consisting of two GE 7FA combustion turbines, two heat recovery steam generators and one GE steam turbine. In addition, the purchase includes rights to an advanced development opportunity for an approximately 400 megawatt quick-start, natural gas-fired peaker, if market conditions warrant, Calpine reported

Calpine is targeting a transaction close in the first quarter of 2014 and expects to fund the transaction with cash on hand, it stated

MinnTex is a portfolio company owned by a private investment fund managed by Wayzata Investment Partners LLC, based in Wayzata, Minn.

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