Calpine to Sell Canadian Assets

Calpine Corp., which owns power plants in 20 states, said Monday that it had agreed to sell its Canadian natural gas reserves and petroleum assets to PrimeWest Energy Trust of Canada for $631 million to raise cash for debt payments.

The sale includes the equivalent of about 221 billion cubic feet of proven gas reserves that produce about 61 million cubic feet a day, San Jose-based Calpine said. Also included in the sale is Calpine Natural Gas Trust’s 25% interest in the equivalent of about 80 billion cubic feet of proven reserves.

Calpine is selling assets to reduce debt that has almost quadrupled since 2000 to about $18.1 billion. The sale is expected to be completed in early September, pending regulatory approval, the company said. Calpine shares fell 12 cents to $3.27 on the New York Stock Exchange. The announcement was released after the market’s close.