Calpine to Build, Buy Power Plants to Boost Sales

Calpine Corp. said Tuesday that it will build a $500-million power plant in Michigan and buy two plants in Canada to boost electricity sales.

Calpine will build a plant in Berrien County, Mich., about 60 miles northeast of Chicago, near high-capacity transmission lines and natural gas pipelines needed to fuel it. The San Jose-based company said the 1,030-megawatt plant will begin operation in 2004.

The company also agreed to buy Westcoast Energy Inc.’s interests in two power plants for about $255 million to boost sales in Canada.

Calpine will get a 250-megawatt plant near Campbell River, Canada, that’s expected to begin running next month, spokeswoman Katherine Potter said. It’s also buying half of a 50-megawatt plant in Whitby, Canada, that began running in September 1998.

Calpine runs or is building power plants in 29 states and Canada that provide enough electricity to light 5 million homes. It’s begun an expansion aimed at boosting its capacity to 70,000 megawatts, or enough to light more than 50 million homes, by 2005.

The plants will be fueled by natural gas. The Michigan plant will connect with American Electric Power Co.’s transmission system and with an ANR Pipeline Co. gas pipeline.

The Canadian plants are cogeneration plants that sell both electricity and steam. Calpine entered Canada last year with a 250-megawatt power plant near Calgary. The company bought Canadian oil and natural gas producer Encal Energy Ltd. in April to secure fuel for power plants.

Calpine shares fell 88 cents to close at $50.68 on the New York Stock Exchange.