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Calpine (CPN) Closes Sale Of Broad River Energy Center

 December 27, 2012 02:40 PM

(By Balaseshan) Calpine Corp. (NYSE: CPN), an independent wholesale power producer, said it has closed the sale of the Broad River Energy Center to Broad River Power LLC, an affiliate of Energy Capital Partners LLC, for $427 million plus adjustments, or about $504 per kilowatt.

Located in Gaffney, South Carolina, the Broad River Energy Center is an 847 megawatt simple-cycle, natural gas-fired power plant. It began commercial operations in June 2000 and has two long-term power contracts with Carolina Power & Light Co., a subsidiary of Duke Energy Corp.

Calpine announced the planned transaction when it reported its third-quarter earnings in November 2012, and the sale was approved by the Federal Energy Regulatory Commission on December 18.

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In a regulatory filing, the company said its board has approved an amendment, effective December 21, to the executive employment agreement, dated August 10, 2008, by and between the company and Jack Fusco.

The amendment extends the current term of the agreement through December 31, 2015. Fusco has served as the company's President and Chief Executive Officer since August 2008 when he joined the company.

Effective December 21, and pursuant to the amendment, Fusco resigned as the company's President, and will continue to serve as its Chief Executive Officer and a member of the Board through annual meeting of shareholders in May 2014.

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Immediately following the Initial Term, Fusco will resign as the company's Chief Executive Officer and continue to be employed as its Executive Chairman through the remainder of the Extended Term.

Under the amendment, Fusco is entitled to receive an annual base salary during the Initial Term of $1.3 million and an annual base salary during the remainder of the Extended Term of 50% of his base salary in effect at the end of the Initial Term.

CPN is trading down 0.11% at $17.80 on Thursday. The stock has been trading between $14.45 and $19.02 for the past 52 weeks.

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