|GUADALUPE POWER PARTNERS INDUSTRIAL DISTRICT
AGREEMENT Part1 (2014-2028)
GUADALUPE POWER PARTNERS INDUSTRIAL DISTRICT
AGREEMENT Part2 (2014-2028)
|Calpine to Acquire Guadalupe Power Partners
Generating Facility in Texas
HOUSTON--(BUSINESS WIRE)--Dec. 2, 2013-- Calpine
Corporation (NYSE:CPN) has agreed to purchase a nominal 1,050 megawatt,
combined-cycle power plant for $625 million, or approximately $595 per
kilowatt, exclusive of adjustments relating to development rights and
working capital, from MinnTex Power Holdings, LLC, a portfolio company
owned by a private investment fund managed by Wayzata Investment
Partners LLC. The natural gas-fired plant is located in Guadalupe
County, 30 miles northeast of San Antonio, Texas.
"Guadalupe is an exceptional plant with an outstanding performance
record that meets Calpine's high standards for operational excellence,"
said Calpine's Chief Executive Officer Jack Fusco. "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. The Guadalupe acquisition
exemplifies our commitment to making disciplined capital allocation
decisions that will enhance shareholder value."
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 is targeting a transaction close in the first quarter of
2014 and expects to fund the transaction with cash on hand. The
transaction is subject to customary closing conditions, antitrust review
under the Hart-Scott-Rodino Act, and approval by the Public Utility
Commission of Texas. White & Case LLP served as legal counsel to
Calpine. Vinson & Elkins, LLP served as legal counsel to Wayzata on the
transaction, and Tudor, Pickering, Holt & Co. served as Wayzata's
exclusive financial advisor.
PSEG Power sells Texas assets
January 13, 2011
PSEG Power has reached an agreement to sell its
Guadalupe and Odessa natural gas combined-cycle power plants in Texas.
The plants will be sold in two separate transactions.
The Odessa plant in west Texas will be sold to High Plains
Diversified Energy Corporation (HPDEC), a municipal utility formed by
the West Texas Municipal Power Agency. The Guadalupe plant in south
Texas will be purchased by MinnTex Power Holdings LLC, a private equity
PSEG Power fully expects both transactions to close in the first
half of the year. If all things go well, the sale of the Guadalupe
plant could close at the end of February and the sale of the Odessa
plant could close at the end of the first quarter.
The transactions have a combined equity value of $687 million, or
$343 per kwh.
“I am proud of the employees in Texas and what we have
accomplished together. Both Guadalupe and Odessa are well-managed and
well-run assets that have incorporated much of the Operational
Excellence Model from the beginning with Fossil. We’ve also
implemented best practices from the Texas plants across the
fleet,” said Rich Lopriore, President, PSEG Fossil.
“Strategically, this transaction presents PSEG with the
financial strength to make disciplined investments for growth, ensuring
the company continues to provide safe, reliable, economic and green
This year marks the tenth anniversary that Guadalupe and Odessa
began commercial operations. PSEG Global developed the Guadalupe and
Odessa plants in an equal 50 percent partnership with Panda Energy in
1999. PSEG acquired the balance of the plant in 2004 and ownership of
the plants was transferred from PSEG Global to PSEG Power in late 2008.
“In my short tenure with the stations, I have come to
appreciate the Texas spirit of cooperation and steadfast commitment to
achieve operational excellence. Several improvements have been notable,
such as unit responsiveness, heat rate improvements and reduced fuel use
at start-up,” said Director Power Generation Dominic DiBari.
“I want to thank the entire team for their due diligence and
support throughout the sales process.”
Guadalupe and Odessa are natural gas-fired combined-cycle power
plants that use state-of-the-art technology. The plants’ advanced
technology ensures maximum efficiency, requiring one-third less fuel and
water for operation than conventional power plants. Combined, the plants
have a generating capacity of 2,000 megawatts.
The High Plains Diversified Energy Corporation (HPDEC) is a
municipal utility company created by the West Texas Municipal Power
Agency (WTMPA) and Republic Power Partners, LP (RPP) as part of a
public-private partnership designed to develop clean energy and
transmission in West Texas. The HPDEC develops, constructs and
operates generation and transmission assets for use in the Panhandle
region of Texas.
MinnTex Power Holdings LLC is an entity created by a private equity fund
based out of Minnesota.
Each new owner will be
contracting with an O&M Manager to oversee operations of the units,
and will be providing an overview of their firms and transition plans
for employees in the coming weeks.