(Photo courtesy: Calpine Corp.)
Calpine Corp. agreed to acquire the Granite Ridge Energy Center from Granite Ridge Holdings for $500 million, or about $671 per kW, subject to working capital adjustments.
With the addition of Granite Ridge, Capline’s footprint in New England will include about 2,000 MW of power generation resources.
Granite Ridge is located in ISO-New England, where tightening market conditions have resulted in capacity revenues that will improve substantially over the next three years. The power plant, which commenced commercial operation in 2003, features two Siemens 501G combustion turbines, two heat recovery steam generators and one steam turbine.
Calpine expects to fund the transaction with a combination of debt and cash. The financing plan for the transaction will ultimately be based upon prevailing market conditions. The company has already obtained committed debt financing sufficient to cover the purchase price.
Calpine expects the transaction to close by the first quarter of 2016. The transaction is subject to customary closing conditions, antitrust review under the Hart-Scott-Rodino Act and approvals from the Federal Energy Regulatory Commission, the Federal Communications Commission and the New Hampshire Site Evaluation Committee.