Denver, April 5, 2010 –Public Service Company of Colorado, an Xcel Energy company, will purchase two of Calpine Corporation’s power plants near Denver, which currently provide power to the utility under power purchase agreements.
The $739 million acquisition stems from an offer by Calpine into a competitive bid process that was part of Xcel Energy’s 2007 Colorado Resource Plan, and was the least cost option among many bids for needed generating resources. The agreement is dependent on regulatory agency approval.
The plants to be purchased are the 621-MW Rocky Mountain Energy Center, located near Hudson, Colo., which began commercial operation in 2004, and produces electricity using efficient combined-cycle technology, and the 310-MW simple-cycle Blue Spruce Energy Center, located in Aurora, Colo., which began operation in 2003.
The plants can collectively provide enough electrical power to meet the needs of about 700,000 Colorado households.
Thad Hill, Calpine’s Chief Commercial Officer, added, “We have been pleased to provide PSCo with clean, efficient and reliable energy solutions for Colorado ratepayers since 2003. We are confident that the 931 MW of capacity developed and operated by Calpine will continue to serve Colorado’s energy needs for the foreseeable future. We appreciate the hard work and dedication of the energy professionals that have operated these facilities during our ownership.”
Xcel Energy is a major U.S. electricity and natural gas company that provides a comprehensive portfolio of energy-related products and services to 3.4 million electricity customers and 1.9 million natural gas customers through its regulated operating companies in eight Western and Midwestern states. Company headquarters are located in Minneapolis.
Founded in 1984, Calpine Corporation is a U.S. power company, currently capable of delivering nearly 25,000 MW of clean, cost-effective, reliable and fuel-efficient power to customers and communities in 16 states in the U.S. and Canada.
Calpine Corporation is committed to helping meet the needs of an economy that demands more and cleaner sources of electricity. Calpine owns, leases and operates low-carbon, natural gas-fired and renewable geothermal power plants.