Power plant asset values ... a Calpine power plant sale closes

 |  About: Calpine Corporation (CPN)
by: Sandy Cohen

Calpine (NYSE:CPN) closed on a previously announced power plant sale in the last few days.  The sale was a small one, and was not a full merchant (uncontracted) facility, but was a 50% interest in a cogeneration power plant in Pennsylvania.

CPN announced the close of the sale (Rueters story; CPN Press Release) on July 11th.

CPN received $37 million for its 50% interest in the 175 MW cogeneration power plant, or about $425/KW.  CPN also will record approximately a $20 million after tax loss.  This indicates CPN received about 60% of its investment in the plant through this sale.