DOW JONES NEWSWIRES
Xcel Energy Inc.'s (XEL) Colorado utility said Wednesday it
plans to complete the purchase of two natural gas-fired power
plants from Calpine Corp. (CPN) for $739 million, after state
regulators approved the deal.
Public Service Co. of Colorado has been purchasing electricity
from the two plants since they started operating. Rather than renew
those contracts, The utility agreed with Calpine to purchase the
facilities, a six-year-old 652-megawatt combined-cycle gas-fired
power plant near Hudson, Colo., and a seven-year-old 310-megawatt
simple-cycle gas-fired plant near Denver.
The Colorado Public Utility Commission on Monday approved the
purchases and the utility's recovery of the costs. The company will
have to file a rate case by April 30 to move the investment into
its rate base, Xcel said in a filing with the Securities and
Exchange Commission.
The company said it expects to complete the purchase in
December.
Shares of Xcel closed 0.9% higher at $23.90; shares of Calpine
closed 0.2% higher at $12.47.
-By Cassandra Sweet, Dow Jones Newswires; 415-439-6468;
cassandra.sweet@dowjones.com