Calpine Corporation has agreed to acquire the Granite Ridge Energy Center from Granite Ridge Holdings, LLC for US$500 million, or approximately US$671 per kilowatt, subject to working capital adjustments.
The 745 megawatt, combined-cycle, gas-fired power plant is located in Londonderry, New Hampshire (UK), approximately 45 miles northwest of Boston.
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.
Calpine’s President and Chief Executive Officer Thad Hill stated:
“This accretive transaction represents an attractive opportunity for Calpine to build upon our track record of value-enhancing portfolio management. With the addition of Granite Ridge, our footprint in New England will comprise approximately 2,000 megawatts of reliable and environmentally responsible generation resources, making us a meaningful supplier in one of the nation’s leading wholesale power markets.”