CPPIB to invest in $5.6 bln buy of U.S. power producer Calpine

Canada Pension Plan Investment Board has agreed to participate in the acquisition of Calpine Corp, a U.S. generator of electricity from natural gas and geothermal resources. The deal, led by U.S. private equity firm Energy Capital Partners, is valued at US$5.6 billion. It includes an investment by CPPIB of US$750 million. Established in 1984, Houston, Texas-based Calpine has 80 North American power plants with the capacity to generate about 26,000 megawatts of electricity. CPPIB Managing Director Avik Dey said the pension fund's investment will help expand its natural resources portfolio to include power and renewable assets.

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