Calpine Corporation (NYSE:CPN) today announced that it has agreed to
sell the Mankato Power Plant, a 375 MW natural gas-fired, combined-cycle
power plant located in Minnesota, to Southern Company subsidiary
Southern Power for $395.5 million plus working capital and other
customary purchase price adjustments.
“Mankato is a modern, efficient and well-performing plant under
long-term contract to the local utility and with an expansion in
advanced development. This sale is another step in our capital
allocation plan to divest plants in non-core regions when we see an
attractive value opportunity,” said Calpine President and CEO Thad Hill.
“I would like to thank our Mankato team for their professionalism and
commitment to operational excellence over the years.”
Mankato provides electricity to Northern States Power, a subsidiary of
Xcel Energy Inc., through July 2026, pursuant to a tolling agreement. In
addition, a 345 MW expansion is currently in advanced development to
serve a 20-year tolling agreement with Northern States Power. A natural
gas-fired combustion turbine and a heat recovery steam generator will be
added, with the incremental steam increasing the power production of the
plant’s existing steam turbine and improving the overall efficiency of
the plant. Commercial operation of the expanded capacity is expected by
June 2019.
Calpine expects to redeploy the proceeds of the sale toward corporate
debt reduction and other corporate purposes. The transaction is
projected to close in the fourth quarter of 2016, subject to customary
closing conditions, antitrust review under the Hart-Scott-Rodino Act and
approval from the Federal Energy Regulation Commission.
About Calpine
Calpine Corporation is America’s largest generator of electricity from
natural gas and geothermal resources. Our fleet of 84 power plants in
operation or under construction represents more than 27,000 megawatts of
generation capacity. Through wholesale power operations and our retail
business, Champion Energy, we serve customers in 21 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 visit www.championenergyservices.com
for details on Champion’s award-winning retail electric services.
Forward-Looking Information
In addition to historical information, this release contains
forward-looking statements within the meaning of the Private Securities
Litigation Reform Act of 1995, Section 27A of the Securities Act of
1933, as amended, and Section 21E of the Securities Exchange Act of
1934, as amended. Words such as “believe,” “intend,” “expect,”
“anticipate,” “plan,” “may,” “will,” “should,” “estimate,” “potential,”
“project” and similar expressions identify forward-looking statements.
Such statements include, among others, those concerning expected
financial performance and strategic and operational plans, as well as
assumptions, expectations, predictions, intentions or beliefs about
future events. You are cautioned that any such forward-looking
statements are not guarantees of future performance and that a number of
risks and uncertainties could cause actual results to differ materially
from those anticipated in the forward-looking statements. Please see the
risks identified in this release or in Calpine’s reports and
registration statements filed with the Securities and Exchange
Commission, including, without limitation, the risk factors identified
in its Annual Report on Form 10-K for the year ended Dec. 31, 2015.
These filings are available by visiting the Securities and Exchange
Commission’s website at www.sec.gov
or Calpine’s website at www.calpine.com.
Given the risks and uncertainties surrounding forward-looking
statements, you should not place undue reliance on these statements.
Many of these factors are beyond our ability to control or predict. Our
forward-looking statements speak only as of the date of this release.
Actual results or developments may differ materially from the
expectations expressed or implied in the forward-looking statements,
and, other than as required by law, Calpine undertakes no obligation to
update any such statements, whether as a result of new information,
future events, or otherwise.
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