MADISON, WI and HOUSTON, TX – May 18, 2012 – Wisconsin Power and Light Company (WPL), a subsidiary of Alliant Energy Corporation (NYSE:LNT), announced today that it exercised its option to purchase Riverside Energy Center, LLC, which owns the Riverside Energy Center, from Calpine Corporation (NYSE:CPN).
The Riverside Energy Center (Riverside) is a 600MW combined cycle natural gas-fired electric generating facility located in Beloit, Wisconsin. It began operation in 2004. WPL currently has a purchase power agreement for approximately 500MW from Riverside. Under that agreement, WPL has the option to purchase Riverside if it exercises the option on or before May 31, 2012.
“We exercised our option because we believe purchasing Riverside allows us to better manage our generation fleet to reduce our reliance on market purchases, manage costs for our customers and remain flexible for the future,” said John Larsen, President – WPL.
“We are pleased we were able to work with Wisconsin Power and Light to achieve a mutually successful outcome by providing them a clean, modern and efficient facility needed to serve their customers while realizing value for Calpine that may now be strategically redeployed for the benefit of our shareholders," said Thad Hill, Calpine Chief Operating Officer. "We are also pleased that Wisconsin Power and Light is interested in retaining the current Riverside employees to assure a smooth ownership and operating transition."
The Public Service Commission of Wisconsin approved the approximately $392 million purchase last month. The purchase is subject to approval from the Federal Energy Regulatory Commission (FERC) and under the Hart-Scott-Rodino Act.
WPL expects to close this purchase by December 31, 2012.
Contacts:
Alliant Energy Media Contact: Steve Schultz, (608) 458-3285
Alliant Energy Investor Relations Contact: Susan Gille, (608) 458-3956
Calpine Corporation Media Contact: Norma Dunn, (713) 830-8883
Calpine Corporation Investor Relations Contact: Bryan Kimzey, (713) 830-8777