14 September 2006 — Calpine Corp. announced that it has received Bankruptcy Court approval to sell the 170-MW Dighton Power Plant, located in Dighton, Massachusetts, US, to BG North America, LLC for approximately $90.2 million.
The company requested authorization from the Bankruptcy Court to sell the Dighton Power Plant as part of the Court-approved auction process in July 2006. The transaction, subject to certain regulatory approvals, is expected to close within the next 30 to 60 days.
“Selling our interest in the Dighton Power Plant is another step forward in our restructuring to emerge from Chapter 11 as a profitable, more competitive power company,” said Robert P. May, Calpine’s CEO. “We’re focused on completing our restructuring as efficiently and quickly as possible. The Dighton sale will help strengthen Calpine’s liquidity and allow us to further concentrate our resources on those core power assets and markets where we can best compete.”
According to Calpine, BG North America, LLC will hire all the existing Calpine full-time employees of the Dighton Power Plant upon change of control. In December of 2000, Calpine acquired the natural gas-fired, combined-cycle plant, which entered operations in July 1999. The plant currently supplies electricity to the New England power market.