Calpine Corporation (NYSE:CPN) (Houston, Texas) recently shut the doors to the company's Clear Lake Cogeneration facility in Pasadena, Texas.

Sources said the station officially ceased operations on February 1. Its three Siemens SGT6-3000E combustion turbines and two Siemens extraction condensing steam turbines all closed on that date. The plant is currently being decommissioned.

Calpine said in summer 2016 that the plant would be closing within the next two years. The Clear Lake Cogeneration plant was an aging facility. The plant was in operation for nearly 32 years and had a staff of 26 employees. With its outdated technology, shrinking profit margins and increasing maintenance costs, keeping the plant open became less feasible.

The country's power sector has seen lower and lower wholesale power pricing with the surplus of cheap natural gas. Calpine owns the largest fleet of natural gas-fired plants in the United States. In the second quarter of 2016, Calpine broke its record for second-quarter power generation. At the same time, it recorded a $29 million loss for the quarter.

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