Houston-based Calpine Corp. (NYSE: CPN) is buying a natural-gas fired power plant in Massachusetts from Chicago-based Exelon Corp. (NYSE: EXC) for $530 million to boost its presence in that area.

The deal — which translates to $655 per kilowatt — is expected to close in the fourth quarter and will increase Calpine’s footprint in the New England competitive wholesale power market.

The plant, Fore River Generating Station, was built in 2003 and is 12 miles southeast of Boston.

“With the acquisition of Fore River, we will grow our presence in a region that features favorable fundamentals and a supportive, market-based regulatory philosophy,” said Thad Hill, Calpine’s president and CEO, in a statement.

Last month, Calpine completed a deal to divest more than $1.57 billion-worth of power plants across the Southeastern U.S.

 

Sourced by bzjournals.com on August 26th 2014.