19 May 2010 — GE Energy Financial Services is buying the 120 MW King City natural gas-fired cogeneration power plant in California’s Salinas Valley for $68 million, or $566/kW. Calpine Corp. has leased, operated and maintained the plant since 1996 and will continue to do so.
The King City plant uses a GE 7EA gas turbine and entered commercial operation in 1989. The plant sells its electricity to Pacific Gas & Electric Co. under a contract until 2019, and supplies steam to a nearby vegetable processing facility.
GE Energy Financial Services is buying the ownership stake in the plant from Kelson Canada, a unit of Harbinger Capital Partners. GE has provided a $47 million loan to the project since 2003.
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