Gas

Six Combined Cycle Plants to Change Hands in the Southeastern U.S.

Calpine Corp. has agreed to sell six of its Southeast region combined cycle power plants with a total capacity of nearly 3.5 GW to LS Power Equity Advisors LLC for $1.57 billion.

The deal includes the 1,134-MW Oneta plant in Coweta, Okla., the 795-MW Decatur plant in Decatur, Ala., the 606-MW Columbia plant in Calhoun County, S.C., the 501-MW Carville plant in St. Gabriel, La., the 237-MW Hog Bayou plant in Mobile, Ala., and the 225-MW Santa Rosa plant in Pace, Fla. All of the plants use natural gas as their primary fuel source. The transaction is expected to close in the second quarter of 2014, pending receipt of necessary regulatory approvals and third-party consents.

LS Power is a developer, owner, operator, and investor in power generation and electric transmission infrastructure throughout the U.S. Since its inception in 1990, the company has developed, constructed, managed, or acquired more than 28 GW of competitive power generation and 470 miles of transmission infrastructure.

“The quality of the assets, the outstanding operational track record of the facilities, and the skilled plant personnel were all important factors in our decision,” said Paul Segal, CEO of LS Power. “These projects have been reliably serving wholesale power customers in the Southeast for a number of years, and we look forward to continuing to provide value for our growing base of customers.”

According to Calpine, it is divesting these plants to better align assets with its strategic focus in core regions, such as the Western U.S. (particularly California), Texas, and the Eastern U.S. (particularly the Mid-Atlantic).

“Today’s announcement represents substantial progress toward the achievement of one of our top strategic priorities—the monetization of our Southeast portfolio,” said Jack Fusco, CEO of Calpine.

Aaron Larson, associate editor (@AaronL_Power, @POWERmagazine)

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