Calpine Buys Bechtel’s Share of Power Plants

Calpine Corp., a developer of power plants, said it bought partner Bechtel Group Inc.’s half of a California electricity-generation venture for $154 million in cash.

Calpine also will assume $141 million in debt in the deal. Bechtel’s share of the venture will add about 1,000 megawatts, or enough power to light about 750,000 homes, to Calpine’s generator capacity in the San Francisco Bay Area.

Calpine and Bechtel, a closely held engineering and construction company based in San Francisco, formed their venture in 1998. They have three power plants under construction in Northern California. Bechtel didn’t say why it sold its stake.

The venture includes an 880-megawatt project in Pittsburg that’s expected to be completed next year; a 600-megawatt plant in San Jose that will be completed by the end of 2003; and a 600-megawatt plant in Hayward that is expected to come on line by mid-2004. All would be fueled by natural gas.

Calpine said it will be able to lower costs at the plants by operating them as part of a single system.

Shares of San Jose-based Calpine rose 79 cents to $24.70 on the NYSE.