April 21, 2010
Calpine Corporation, the country’s leading generator of natural gas-fueled electricity, announced Tuesday that it will buy 18 operating power plants and one that’s under construction from Pepco Holding Inc. for $1.65 billion.
The purchase of Pepco’s mid-Atlantic Connectiv Energy fleet of plants, which generate 4,490 megawatts of power, boosts Calpine’s presence in the world’s biggest power market, Bloomberg reports. Calpine owns 76 other plants in states across the country.
White & Case M&A partners Michael Shenberg and Gregory Pryor represented Calpine, along with a team including Bill Dantzler, William Walker, Ken Raskin, Larry Gannon, Stu Caplan, David Joyce, Roger Noble and James Hayden
Pepco was advised by longtime corporate and securities outside counsel Covington & Burling. The Washington-based Covington team was led by corporate partner Mike Lefever and included Kerry Burke, Bob Gage, Corinne Goldstein, Robert Newman, Bill Massey, and James Dean.
The deal will help Pepco strengthen its balance sheet and reduce risk, company CEO Joseph Rigby said in a statement