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5.0 . <br />4-Iq-doI5 <br />Calpine to buy large power plant near San Antonio <br />{bilin Eaton Natural gas Texas <br />Calpine's Magic Valley project near Edinburg, Texas (Photo: Calpine) <br />HOUSTON — Calpine Corp. is buying a natural gas-fired power plant near San Antonio for <br />$625 million, another acquisition in Texas as it looks to build its footprint in the state, the <br />company said Monday. <br />The Houston-based power generator said it's buying the 1,050 megawatt, combined -cycle power <br />generating facility from MinnTex Power Holdings, a private equity -backed power company. The <br />plant sits on a 110 -acre site in Guadalupe County about 30 miles northeast of San Antonio. <br />It's a larger grab than Calpine's S432 million power plant acquisition in Central Texas last <br />year and it has more capacity than two plants it bought in California in recent months. <br />Calpine is making moves in Texas as electricity demand is increasing and reserve margins are <br />tightening, CEO Jack Fusco said in a written statement. <br />The deal is slated to close in the first quarter. <br />"Acquiring this modern, flexible and efficient plant in ERCOT's south zone at a discount to <br />replacement cost furthers our strategic objectives in this key market," Fusco said. <br />Apart from its recent acquisitions, Calpine also has made some expansions in two energy centers <br />in the Houston area. <br />During a third-quarter earnings conference call, Fusco said the combination of a growing <br />economy and proposed regulatory changes "could make Texas one of the best places to invest <br />in the sector, even while the debate continues around what the final modified market construct <br />will be." <br />Fusco said the company is focusing on single -plant acquisitions. <br />Calpine shares inched up about 1 percent to $19.10 in early trading Monday. <br />