two announcements on power : calpine acquires skygen and panda and calpine form alliance
news briefs :
+ calpine to acquire skygen energy
calpine corp . said it plans to acquire skygen energy llc ( skygen energy )
from michael polsky and from wisvest corp . , a wisconsin energy corp .
affiliate , for $ 450 million , plus the assumption of certain obligations of
skygen energy . the skygen energy acquisition - - along with other recently
announced acquisitions - - would increase calpine ' s 2004 operating portfolio
to over 40 , 000 mw of generation .
upon closing of the transaction , expected during the third quarter of 2000 ,
calpine will increase its power portfolio by up to 13 , 500 mw of natural
gas - fired generation in the u . s . , and will acquire 34 general electric 7 fa
gas turbines . under terms of the agreement , calpine will add three operating
facilities ( 780 mw ) , three projects under construction ( 812 mw ) , 13
late - stage development facilities ( 5 , 258 mw ) and 16 project development
opportunities ( 6 , 615 mw ) .
skygen was founded by michael polsky in 1991 . skygen will continue to
develop its portfolio of development projects as a wholly owned subsidiary
of calpine . michael polsky will serve as president of skygen and as a member
of calpine ' s board of directors . to fund the skygen energy and other
recently announced acquisitions , calpine has obtained a $ 1 billion
short - term credit facility with the bank of nova scotia , credit suisse first
boston and cibc world markets . the company expects to refinance this
facility in the capital markets .
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+ panda , calpine form business alliance
panda energy international and calpine corp . formed a business alliance
involving eight power plant projects panda has under development ,
representing nearly 10 , 000 mw of generating capacity . under terms of the
agreement , panda will provide development capabilities and carry each of the
projects to the construction phase . calpine will have exclusive rights to
construct , own and operate the plants . panda will participate in 50 % of the
cash flow , above calpine ' s priority return , in all the projects within the
alliance .
included in the pact is the acquisition by calpine of 24 general electric
7 fa combustion gas turbines and 12 steam turbines scheduled for delivery in
2001 to 2002 . the first project to be developed under the alliance will be
the oneta power partners , l . p . , a 1 , 000 mw natural gas - fueled power plant
now being built in coweta , ok . under terms of the agreement , calpine will
pay panda approximately $ 126 million , which includes reimbursement of
development costs , payments for the gas and steam turbines and the oneta
facility . the oneta transaction is expected to close in july . it is
scheduled to go into service in 2002 .