CPPIB to Invest $750 Million in Calpine Corp. Acquisition

The Canadian pension fund is one of many investors in $5.6 billion consortium.

The Canada Pension Plan Investment Board (CPPIB) will be a partner in the acquisition of US independent power juggernaut Calpine Corp., the board announced Friday.

The investment comes as part of a $5.6 billion cash consortium comprised of funds advised by Energy Capital Partners and additional investors. The transaction is subject to regulatory and shareholder approval as well as other customary closing conditions. CPPIB will invest $750 million in the deal.

Calpine consists of 80 power plants in operation or under construction, which can generate around 26,000 megawatts of electricity from geothermal and natural gas resources—enough to power an estimated 20 million homes. Its 13 geothermal geyser assets in northern California help make it one of the largest renewable energy sources in the state. The company also sells electricity to residential, commercial, and industrial customers through its Calpine Solutions and Champion Energy retail channels.

“This investment aligns well with our strategy to expand our natural resources portfolio to include power and renewable assets,”Avik Dey, managing director, head of natural resources, CPPIB, said in a statement. “Calpine owns and operates one of the most-efficient fleets of natural gas power plants in the US serving critical markets in California, Texas, and the Eastern US. Coupled with the reliable generation of renewable geothermal energy, Calpine’s modern approach to energy production is ideally positioned for ongoing success. We are pleased to partner with Energy Capital Partners, a leader in the energy infrastructure space, on this transaction.”


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