Calpine Turbine at the Geysers

Attribution: KQED

This morning there is news on the wire that New Jersey utility NRG has bid over $11B in an all stock deal to acquire Calpine. This is a 6% premium over the closing price of Calpine yesterday. With 26GW of generation capacity (a little less than 1GW geothermal, the rest natural gas) Calpine is a significant generator who only emerged from bankruptcy protection 4 months ago. Should the deal be consummated, the combined utility would have nearly 50GW of generation capacity in hydro, geothermal, petrochemical, coal, and nuclear powered generation.

The Calpine board is considering the offer at present. This is the latest in a wave of consolidate of the fossil fuel generators. Let’s hope the significant geothermal operation is not lost/damaged in the shuffle.

Links:
Calpine
NRG
AP Story on Bid

This entry was posted on Thursday, May 22nd, 2008 at 8:09 am and is filed under Business, Fossil Power, Geothermal.