Calpine continues asset sale

Calpine Corporation has recently agreed to sell its 550-megawatt Ontelaunee Energy Center to LS Power Equity Partners for $225 million.

Calpine Corporation has recently agreed to sell its 550-megawatt OntelauneeEnergyCenter to LS Power Equity Partners (LS Power) for $225 million.

The sale is part of Calpine’s plan to reduce debt and optimise its power plant portfolio. Since launching its initiative in May 2005, Calpine has completed or announced more than $2 billion of asset sales.

The Ontelaunee sale is the third of four planned power plant sales, which the company announced in June 2005. Calpine expects to complete the sale in September, pending regulatory approval and other conditions of closing.

As part of the transaction, Calpine will continue to operate the plant on behalf of LS Power for five years, and provide turbine maintenance and parts services for ten years. Calpine Energy Services, the trading and risk management subsidiary for Calpine, will supply a variety of energy services, including power marketing, and scheduling of power and fuel for a six-month term.

The OntelauneeEnergyCenter is a natural gas-fired, combined-cycle power plant located in Ontelaunee Township, Pennsylvania. The plant entered operations in 2002 and generates electricity for the Pennsylvania-New Jersey- Maryland power market.