24.10.2003: Calpine Corp.: Two-Year Energy Agreement with Reliant
Thursday October 23, 11:30 am ET
Flexible Energy Product Helps Retail Energy Leader Serve Loads
SAN Jose, Calif., Oct. 23 / Calpine Corporation (NYSE: CPN - News), a leading North American power company and the largest independent power producer in Texas, has finalized a two-year agreement to supply electricity to Reliant Energy Electric Solutions, LLC (Reliant), Houston, Texas. Under the terms of the agreement, Calpine will supply 150 megawatts beginning Jan. 1, 2004, increasing to 250 megawatts on Jan. 1, 2005.
Calpine"s energy agreement is designed to provide Reliant with daily scheduling flexibility and access to Calpine"s fully integrated system in Texas including 11 energy-efficient power plants, totaling approximately 6,400 megawatts. Calpine"s facilities are strategically located throughout the Electric Reliability Council of Texas (ERCOT). Reliant, the second largest retail power company in Texas, will pay Calpine a fixed capacity payment and a variable energy payment for electricity purchased.
"With the breadth and quality of our power portfolio and ERCOT"s market structure, Calpine is able to offer energy products to retail electricity providers to help them better manage their load requirements," said Carey Jordan, vice president of power marketing for Calpine. He added, "This is a good example of companies leveraging their combined strengths to enhance value for electricity end users."
The company continues to execute its strategy of contracting the majority of its output under long-term power contracts. Year-to-date, Calpine has signed power sales contracts totaling in excess of 5,300 megawatts, including 20 contracts totaling 2,000 megawatts in the ERCOT market. In addition, the company recently announced two large power contracts. Earlier this month, Calpine signed a term sheet for a ten-year power sales agreement with San Diego Gas & Electric for the full output of Calpine"s 570-megawatt Otay Mesa Energy Center currently under construction. The second agreement, also announced this month, is with the Mexican utility Comision Federal de Electricidad for a 525-megawatt, 25-year supply of electricity from Calpine"s and Mitsui"s proposed gas-fired energy center to be built in Mexico.
Reliant provides a complete suite of energy products and services to approximately 1.7 million electricity customers in Texas ranging from residences and small businesses to large commercial, industrial and institutional customers. Reliant also serves large commercial, industrial and institutional clients in the PJM (Pennsylvania, New Jersey, Maryland) Interconnection.
Calpine Corporation is a leading North American power company dedicated to providing electric power to wholesale and industrial customers from clean, efficient, natural gas-fired and geothermal power facilities. The company generates power at plants it owns or leases in 22 states in the United States, three provinces in Canada and in the United Kingdom. Calpine is also the world"s largest producer of renewable geothermal energy, and it owns approximately 900 billion cubic feet equivalent of proved natural gas reserves in Canada and the United States. The company was founded in 1984 and is publicly traded on the New York Stock Exchange under the symbol CPN. For more information about Calpine, visit www.calpine.com.
Source: Calpine Corporation