Houston power company Calpine Corp said on Monday that it agreed to purchase Guadalupe Power Plant for USD625 million, or USD595 per kilowatt. The 1,050-megawatt, combined-cycle plant is located near San Antonio, according to Reuters.

Calpine will buy the said plant from MinnTex Power Holdings LLC. MinnTex bought Guadalupe Power in 2011 for approximately USD350 million from a Public Service Enterprise Group unit, the report stated.

According to Calpine, the transaction includes development rights for new peaking units that Guadalupe Power is already developing. The said development will depend on the demand from the market, the report said. 

In October, Guadalupe Power secured an air permit for a 470-MW peaking power plant to be established at the site and in-service by mid-2015. According to regulators, the state needs more peaking units that can start-up fast but will operate only when needed. These units are needed to meet the increasing demand for power or to compensate for fluctuating wind generation, Reuters reported.