San Jose, CA, and Stamford, CT, Sept. 22, 2006 — The U.S. Bankruptcy Court for the Southern District of New York approved the sale of a 35-percent equity interest in bankrupt power producer Calpine Corp.’s Russell City Energy Center to GE Energy Financial Services for approximately $44 million.
Calpine will own the remaining 65% interest. GE Energy Financial Services’ equity will be applied toward completion of development and construction of the power plant, and it also will provide related credit support for the project. The Russell City Energy Center is a proposed 600-megawatt, natural gas-fired power plant to be built in Hayward, Calif.
Construction of the fuel-efficient, combined-cycle power plant is scheduled to begin by the spring of 2008 and to be completed in mid-2010. In March 2006, a Calpine affiliate agreed in a letter of intent to sell the Russell City Energy Center’s full output to Pacific Gas and Electric Company (PG&E). Calpine and PG&E expect to replace the letter of intent in October 2006 with a ten-year tolling agreement.
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