Home > Calpine to Purchase Conectiv Energy Fleet for $1.65 Billion, Adding Scale in Targeted PJM Region
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Calpine to Purchase Conectiv Energy Fleet for $1.65 Billion, Adding Scale in Targeted PJM Region

Calpine to Purchase Conectiv Energy Fleet for $1.65 Billion, Adding Scale in Targeted PJM Region

April 21, 2010 – Calpine Corporation (NYSE:CPN) announced today that it has agreed to purchase 4,490 MW of power generation assets from Pepco Holdings, Inc. (PHI) for $1.65 billion plus adjustments. The purchase of the Conectiv Energy fleet, which includes 18 operating power plants and one plant under construction, is expected to close by June 30, 2010.

“The Conectiv acquisition represents a unique opportunity to transform our company by expanding our portfolio with scale in one of the most robust competitive markets in the country, giving us even greater geographic diversity that we expect will enhance value for our shareholders,” said Jack A. Fusco,
Calpine’s President and Chief Executive Officer. “This adjusted free cash flow and EBITDA accretive transaction meets the criteria we established last year for financially disciplined growth and achieves our tated strategic goal of expanding with scale into an Eastern market.

“Calpine has long been a leader in generating clean energy at our natural gas-fired and geothermal plants. The Conectiv fleet of primarily natural gas-fired plants and renewable generation,” Fusco said, “coupled with our decision to operate the two coal plants in the fleet on natural gas, reaffirms our strong sense of environmental stewardship. This transaction also reaffirms our view that natural gas-fired and renewable generation are the core components of the energy solution for our country’s future and our commitment to that business model.”

The full press release is available here on the Calpine website.