The Canada Pension Plan Investment Board is acquiring a stake in an independent power generator in the United States for $949 million.

The CPPIB is part of a consortium of funds advised by Energy Capital Partners. The total investment in Houston-based Calpine Corp., which owns 80 power plants and sells electricity to residential, commercial and industrial customers, is $7.1 billion.

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“This investment aligns well with our strategy to expand our natural resources portfolio to include power and renewable assets,” said Avik Dey, managing director and head of natural resources at CPPIB, in a news release.

“Calpine owns and operates one of the most efficient fleets of natural gas power plants in the U.S. serving critical markets in California, Texas and the Eastern U.S. Coupled with the reliable generation of renewable geothermal energy, Calpine’s modern approach to energy production is ideally positioned for ongoing success.”

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The transaction is subject to regulatory and shareholder approval and other customary closing conditions.

Copyright © 2017 Transcontinental Media G.P. Originally published on benefitscanada.com

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