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Calpine Sheds Six Power Plants in $1.6B Deal <br />ByClaire PooleFoiiow 04/21/14 - 11:58 AM EDT <br />Get TheStreet Quant Ratings' exclusive 5 -page report for (CPU) - FREE. <br />HOUSTON ( The Deal) -- Privately held power and energy infrastructure owner LS Power Equity Advisors said Monday it <br />agreed to pick up six natural gas-fired, combined -cycle power plants in the southeastern U.S. fromCalpine (CPN - Get <br />Report) of Houston for $1.57 billion in cash. <br />The plants are in Gabriel, La.; Calhoun County, S.C.; Decatur, Ala.; Mobile, Ala.; Coweta, Okla.; and Pace, Fla., and <br />generate 3,500 megawatts. They feed power to investor-owned utilities, municipal utilities, cooperatives and other market <br />players. <br />Analysts at Tudor, Pickering, Holt & Co. Securities Inc. wrote in a note that the region is oversupplied and utility dominated, <br />leading to subpar returns for independent power plant generators in the area. They think LS Power wants the plants <br />because their value could increase after 2015 when coal retirements begin to be driven by the Environmental Protection <br />Agency's Mercury and Air Toxics Standards. The analysts wrote that Calpine would rather use the proceeds to invest in <br />competitive wholesale power markets such as California, Texas and the mid-Atlantic U.S. <br />