12.07.05

12.7.2005: Meldung: Calpine Corp.: Sale of 50% Interest in the Grays Ferry Cogeneration Facility Completed

Calpine Completes Sale of Its 50% Interest in the Grays Ferry Cogeneration Facility
Monday July 11, 12:02 pm ET

SAN JOSE, Calif., July 11 -- Calpine Corporation (NYSE: CPN - News) has completed the sale of its 50-percent interest in the 175-megawatt Grays Ferry Cogeneration Facility to an affiliate of Thermal North America, Inc. (TNAI) for $37.4 million. Calpine announced plans for the sale of Grays Ferry and three additional non-strategic power plants in June as part of the company"s program to reduce debt, increase cash flow and optimize its power plant portfolio. Calpine expects to use net proceeds from the sale for corporate purposes, including the repurchase of existing Calpine debt.

"This transaction represents another non-strategic asset sale and advances our initiative to de-lever Calpine"s balance sheet, strengthen cash flow and enhance the long-term value of our power plant portfolio," stated Calpine Chief Financial Officer Bob Kelly. "At $425 per kilowatt, we believe this asset sale represents a very good value for Calpine"s 50% interest in Gray"s Ferry. And, while this is non-strategic asset for Calpine, it provides TNAI with an opportunity to own a 100% interest in the plant."

The asset sale also eliminates Calpine"s 50% share of the cogeneration facility"s debt, representing a reduction of approximately $21.6 million of Calpine"s unconsolidated, non-recourse project debt as of March 31, 2005. The company expects to record a loss on the sale of Grays Ferry totaling approximately $20 million in the quarter ended June 30, 2005.

Grays Ferry entered operations in 1996 and delivers electricity to PECO Energy Company under a long-term contract that expires in 2017. As a cogeneration plant, it is contracted to supply steam for Trigen-Philadelphia through 2022. Calpine acquired its 50% interest in Grays Ferry in 1999.

A major power company, Calpine Corporation supplies customers and communities with electricity from clean, efficient, natural gas-fired and geothermal power plants. Calpine owns, leases and operates integrated systems of plants in 21 U.S. states, three Canadian provinces and in the United Kingdom. Its customized products and services include wholesale and retail electricity, natural gas, gas turbine components and services, energy management, and a wide range of power plant engineering, construction and operations services. Calpine was founded in 1984. It is included in the S&P 500 Index and is publicly traded on the New York Stock Exchange under the symbol CPN. For more information, visit www.calpine.com.

Source: Calpine Corporation
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