WASHINGTON (dpa-AFX) - Wisconsin Power and Light Co. or WPL, a subsidiary of Alliant Energy Corp. (LNT), on Friday said it exercised its option to purchase Riverside Energy Center, LLC, from Calpine Corp. (CPN). The Public Service Commission of Wisconsin approved the purchase, worth around $392 million, last month.
Riverside Energy Center, LLC owns the Riverside Energy Center, a 600MW combined cycle natural gas-fired electric generating facility located in Beloit, Wisconsin. It began operation in 2004.
WPL currently has a purchase power agreement for 500 MW from Riverside. Under that agreement, WPL has the option to purchase Riverside if it exercises the option on or before May 31.
John Larsen, President - WPL, said, 'We exercised our option because we believe purchasing Riverside allows us to better manage our generation fleet to reduce our reliance on market purchases, manage costs for our customers and remain flexible for the future.'
WPL expects to close this deal by December 31.
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