SAN JOSE, Calif., Aug. 1, 2001 – Calpine Corporation announced today that it has entered into an agreement with Edison Mission Energy for the purchase of the remaining fifty percent equity interest in a 240-megawatt combined-cycle cogeneration facility located in Gordonsville, Va. for $35 million.
Calpine acquired an initial fifty percent equity interest in the facility in 1997. The transaction is expected to close later this summer, at which time Calpine will assume operations of the facility.
“The Gordonsville facility has a strong track record and will complement our rapidly-growing portfolio in the expansive Southeast power market,” according to Bob Alff, Calpine senior vice president and head of its Eastern Region portfolio. “We are very pleased with the plant’s performance to date, and we believe that we can further enhance its value through our direct ownership and operation of the facility.”
The Gordonsville facility provides electric power and steam under long-term contracts to Virginia Electric and Power Company and the Rapidan Service Authority, respectively, that expire in 2024. The plant was commissioned in 1994 and uses two General Electric model 7EA combustion turbine generators in combined-cycle with two steam turbine generators to maximize fuel efficiency and lower emissions.
Based in San Jose, Calif., Calpine Corporation is dedicated to providing customers with reliable and competitively priced electricity. Calpine is focused on clean, efficient, natural gas-fired generation and is the world’s largest producer of renewable geothermal energy. Calpine has launched the largest power development program in North America. To date, the company has approximately 34,700 megawatts of base load capacity and 8,100 megawatts of peaking capacity in operation, under construction, pending acquisitions and in announced development in 29 states, the United Kingdom and Canada. The company was founded in 1984 and is publicly traded on the New York Stock Exchange under the symbol CPN. For more information about Calpine, visit its Website at http://www.calpine.com.