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Newsmakers

Kentucky Gov. Launches Pension Reform Website

In his quest for state pension reform, Gov. Bevin just made it easier to keep the public informed on retirement plan updates.

By Chris Butera

Kentucky’s Office of the State Budget Director on Friday introduced KentuckyPensions.com, a website designed to provide residents information about pensions. People will find answers to frequently asked questions, view reports and a glossary of key terms, follow the latest developments, and offer feedback.

“We hope that retirees, current state employees, and all Kentuckians will find this website to be a helpful, easy-to-navigate tool,” State Budget Director John Chilton said in a statement. “As we address this vital and complex issue, we want to educate the public, dispel myths, and set the stage for constructive dialogue. We will continue to update the website as things progress.”

In the fall, Gov. Matt Bevin will meet in a special session of the General Assembly to discuss Kentucky’s $64 billion unfunded pension liability—a deficit that averages out to $15,000 per Kentuckian. The state has been credited by the S&P credit rating agency as the most underfunded in the US, with only 37.4% of its total current obligations funded. The national median is 74.6%.

On the site, Bevin’s statement reads: “We have a legal and a moral obligation to those of you that are retired to fulfill the promises that have been made to you.”

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Home > News > Asset Allocation > CPPIB to Invest $750 Million in Calpine Corp. Acquisition
Asset Allocation

CPPIB to Invest $750 Million in Calpine Corp. Acquisition

The Canadian pension fund is one of many investors in $5.6 billion consortium.

By Chris Butera

The Canada Pension Plan Investment Board (CPPIB) will be a partner in the acquisition of US independent power juggernaut Calpine Corp., the board announced Friday.

The investment comes as part of a $5.6 billion cash consortium comprised of funds advised by Energy Capital Partners and additional investors. The transaction is subject to regulatory and shareholder approval as well as other customary closing conditions. CPPIB will invest $750 million in the deal.

Calpine consists of 80 power plants in operation or under construction, which can generate around 26,000 megawatts of electricity from geothermal and natural gas resources—enough to power an estimated 20 million homes. Its 13 geothermal geyser assets in northern California help make it one of the largest renewable energy sources in the state. The company also sells electricity to residential, commercial, and industrial customers through its Calpine Solutions and Champion Energy retail channels.

“This investment aligns well with our strategy to expand our natural resources portfolio to include power and renewable assets,”Avik Dey, managing director, head of natural resources, CPPIB, said in a statement. “Calpine owns and operates one of the most-efficient fleets of natural gas power plants in the US serving critical markets in California, Texas, and the Eastern US. Coupled with the reliable generation of renewable geothermal energy, Calpine’s modern approach to energy production is ideally positioned for ongoing success. We are pleased to partner with Energy Capital Partners, a leader in the energy infrastructure space, on this transaction.”

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