Calpine drops lease on Kaukauna power plant
The Business Journal of Milwaukee
Independent power producer Calpine Corp. said Thursday that it will no longer lease and manage the Fox Energy Center in Kaukauna, dropping the power plant as part of a reorganization under bankruptcy.
Calpine said it has completed the sale of its leasehold interest in the 560-megawatt Fox Energy Center to the power plant's owner, GE Energy Financial Services for $16.3 million. The deal, which was approved by federal regulators and the bankruptcy court, eliminates $352.3 million in Calpine leasing obligations.
The Fox Energy Center sells energy to Wisconsin Public Service Corp., Green Bay, under a 10-year power service agreement.
GE Energy Financial has hired all of Calpine's former employees to operate and maintain the power plant.
Calpine, San Jose, Calif., filed for protection under Chapter 11 bankruptcy code Dec. 20 in the U.S. Bankruptcy Court for the Southern District of New York. In April, Calpine announced it would cut nearly one-third of its work force and sell approximately 20 power plants by the end of 2006
Calpine also operates Wisconsin power plants in Beloit and Cambridge. It also owns and operates the Zion Energy Center in Zion, Ill., which provides power to Milwaukee utility We Energies.
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