Calpine Corp. said Thursday that it will buy a natural gas-fired power plant in Texas for about $432 million to boost its presence in a state where the supply of surplus power is shrinking.
Calpine is buying the 800-megawatt plant near Laguna Park in central Texas from Bosque Power Co. LLC. Calpine said it will use cash on hand for the deal, which it expects to close in early November.
It said the price will also include unspecified adjustments, but did not provide an estimate of how that would affect the closing price.
CEO Jack Fusco said acquiring the plant is "consistent with our strategy to boost capacity in Texas as electric demand rises and reserve margins tighten."
The 280-acre facility includes a 250-megawatt unit with one natural-gas turbine that went into operation in 2001 and a 550-megawatt unit with two gas turbines that started running in 2000.
Calpine operates 91 plants that produce power for wholesale customers in 20 states and Canada and is building two more plants.
Calpine shares rose 6 cents to $17.81in morning trading Thursday. They have gained about 8 percent this year.