As part of its program to enhance liquidity and reduce debt, Calpine Corp. (San Jose, CA) has sold its power contract related to the 118 MW Parlin and 58 MW Newark Power Plants in New Jersey. With the sale, Calpine raised $101 million in cash, after transaction costs and a payment to retire approximately $79 million of non-recourse project debt.
"Calpine and a valued customer benefit from this transaction," stated Bob Kelly, Calpine chief financial officer. "The customer continues to receive reliable power, at more competitive rates. Calpine enhances its liquidity, reduces debt and strengthens its competitive position in the PJM market."