Calpine Corp. plans to sell about 20 power plants and cut its workforce by 775, which when combined with previously announced measures will trim annual costs by more than $150 million.

“We are refocusing Calpine’s resources on what we do best, power generation,” said CEO Robert P. May. “We’re downsizing our portfolio and market reach, and focusing on core assets and markets where Calpine can best compete. Calpine is selling high-quality noncore assets, and by doing so, will become a smaller, more focused power company, purposefully structured around profitable operating areas.”

Calpine said a review of the entire company identified about 20 plants in operation or under construction that are no longer considered to be core operations due to factors including financial performance, market prospects and strategic fit. The goal is to sell the majority of the assets by the end of the year. A company spokesperson said no more information was available about what plants would be sold.

Calpine also is closing offices in Atlanta, Boston and Dublin, CA. Operations will be consolidated into Calpine’s San Jose, CA headquarters as well as offices in Houston and Folsom, CA. The company will cut staff by about 775 positions, most by the end of the year. About 100 employees will be affected immediately.

“We’re making the tough decisions that are essential for Calpine to emerge from bankruptcy a viable and valuable enterprise,” May said. “I’m encouraged by the progress we are making in our restructuring. Together with our cost-cutting actions announced in February, we will reduce our annual costs by over $150 million. I believe Calpine has good people, good assets and all the right ingredients for long-term success.”

Late last month Calpine said its foreign nondebtor affiliate agreed to sell its 45% interest in the 525 MW Valladolid III power plant, currently under construction on the Yucatan Peninsula in Mexico. Calpine is selling its equity interest to the two remaining partners in the project, Mitsui & Co. Ltd. and Chubu Electric Power Co. Inc.

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