The sale of Calpine Corporation, the nation’s largest independent power producer could have an impact on its Oklahoma operations. Calpine, based in Houston has been sold to Energy Capital Partners and a consortium of investors in a $5.6 billion cash deal.
Calpine owns and operates its Oneta Energy Center in northeast Oklahoma and under a 2012 announced agreement began selling electricity to American Electric Power Service corporation, parent to Public Service Company of Oklahoma. The sales agreement will continue through May 31, 2031.
Calpine has a fleet of at least 93 power generation plants across the U.S. and put itself up for sale earlier in 2017. Sales talks with Energy Capital were confirmed in late July. As for the consortium of investors, it is lead by Access Industries and Canada Pension Plan Investment Board. The sale is expected to be closed in the first quarter of 2018.
The purchase price was $15.25 per share and under the deal, if Calpine were to terminate the deal for a better offer, it would have to come up with $142 million to the investor consortium. The sales agreement calls for Calpine to keep its headquarters in Houston with the existing management team.
“With ECP, Calpine will be able to operate as it always has — executing on our strategic objectives of providing safe and reliable power and serving our retail and wholesale customers with differentiated products and services,” Thad Hill, president and CEO of Calpine, said in a press release. “We will also continue to strengthen our wholesale power generation footprint, while benefiting from ECP’s support, industry expertise and long-term investment horizon.”