Calpine Corp. added 700 MW of New England power generation toits portfolio on Friday by purchasing assets from Dartmouth,MA-based Energy Management Inc. (EMI) for $145 million and theassumption of about $220 million of project financing.

Calpine is buying the remaining interest in three recentlyconstructed combined-cycle generating facilities located inDighton, MA; Tiverton, RI; and Rumford, ME, as well as Calpine-EMIMarketing LLC, a joint marketing venture between Calpine and EMI.Prior to the transaction, Calpine had a net interest of 50% in theprojects.

“The Dighton, Tiverton, and Rumford assets are among the firstmerchant power plants in the New England market, and acquiring theremaining interest in these projects illustrates the implementationof our New England market strategy,” said Bob Alff, Calpine’ssenior vice president. “Combined with our other announced projectsin the Northeast, we have established a strong position in NewEngland, with excellent geographic diversity and the ability tooperate these assets as a coordinated system.”

In addition to Tiverton, Rumford and Dighton, Calpine is in thefinal stages of construction of the 500 MW Westbrook Energy Center,located in Westbrook, ME, and will shortly begin construction ofthe 500 MW Towantic Energy Center, located in Oxford, CT. Calpinealso owns a 37% interest in the 160 MW Androscoggin Energy Center,located in Jay, ME, as part of the recently completed acquisitionof Northbrook, IL-based SkyGen Energy for $450 million.

The deal with EMI calls for Calpine to pay $145 million,including a cash payment of $100 million and the issuance of500,000 shares of Calpine common stock. The transaction, whichremains subject to regulatory approvals, is expected to close byDec. 31.

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