Hayward, Calif., June 27, 2011 – Calpine Corp. and GE Energy Financial Services announced that they have obtained an $844.5 million credit facility to finance construction of the 619-MW, combined-cycle Russell City Energy Center in Hayward, California.
The power plant, now under construction, received a federal air permit that includes a voluntary limit on greenhouse gas emissions. The project finance facility includes a construction loan that will convert to a 10-year term loan when commercial operations begin, expected in mid-2013. The construction loan and term loan facility will initially be priced at LIBOR plus 2.25 percent.
The loan facility – jointly arranged by MUFG Power & Utilities Group; ING Capital LLC; Lloyds Bank Corporate Markets; BMO Capital Markets and CoBank, ACB – is non-recourse to Calpine and GE Energy Financial Services.
GE Energy Financial Services sees the project as an example of its strategic emphasis on partnering with energy project developers.
Under development since 2001, the Russell City Energy Center will use the most advanced emissions control technology available today for a natural gas-fired power plant. Pacific Gas and Electric has agreed to purchase the full output of electricity from Russell City upon completion and will supply natural gas fuel to the plant under a 10-year power purchase agreement approved by the California Public Utilities Commission in September 2010.
The facility is expected to play a critical role in meeting the Bay Area’s power needs as older, emissions-intensive plants shut down and in supporting the integration of renewable energy projects into California’s power grid.