8.1.2003: Meldung: Calpine Corporation signs Power Sales Agreement
Tuesday January 7, 9:00 am ET
SAN JOSE, Calif., Jan. 7 -- Calpine Corporation (NYSE: CPN - News), the nation"s leading independent power company and largest producer of renewable geothermal energy, announced today that it recently entered into power purchase and sales agreements with the Pacific Gas and Electric Company (PG&E) and the State of California Department of Water Resources (DWR). The agreements call for the delivery of 110 megawatts of on-peak and up to 55 megawatts of off-peak geothermal power. Energy deliveries began January 1, 2003. The five-year agreement with PG&E was entered into pursuant to a joint contracting effort with DWR. Calpine expects the contract to generate annual revenue of approximately $40 million.
"This new five-year agreement allows Calpine to further enhance our long-term contract portfolio, while at the same time providing an important renewable energy resource for California," said Calpine"s Curt Hildebrand, Vice President, Sales & Marketing.
"Our focus on committing the majority of our generation under long-term contracts and our ability to meet our customers" long-term energy requirements continues to establish Calpine as the premier supplier in the power industry," continued Hildebrand. "Calpine"s portfolio of long-term contracts provides a predictable cash flow for the company and competitive, reliable energy products for our customers. While the industry has witnessed severe volatility in market prices for electricity, Calpine"s and our customer"s exposure has been mitigated by our volume of long-term contracts backed by our highly efficient fleet of clean, low-cost generating assets."
Additionally, as Calpine has added new generating capacity over the past year, the company has entered into new long-term contracts with load-serving and industrial customers throughout the United States, totaling nearly 4,000 megawatts of power sales. The company is currently in negotiations with other load-serving entities for up to 5,000 megawatts of additional long-term power sales that will serve to further hedge Calpine"s exposure to future fluctuations in the market.
Power delivered under these agreements will originate from Calpine"s Big Geysers and Grant facilities at The Geysers located in Northern California. Per a recent California Public Utility Commission (CPUC) decision, California"s utilities are expected to meet 20 percent of their load through the purchase of renewable power by 2017. To date, geothermal resources are the leading in-state renewable generating technology capable of meeting the utilities" immediate supply needs. The CPUC approved the PG&E agreement on December 19, 2002.
Calpine"s ownership in power generation began with the purchase of a five percent interest in a 20-megawatt facility at The Geysers in 1989. Calpine currently owns 19 of the 21 operating facilities at The Geysers and, as a result, is the world"s largest producer of electricity derived from geothermal resources. Further, recognizing the importance of The Geysers, Calpine is expanding and extending this valuable renewable resource through wastewater recharge projects whereby clean reclaimed wastewater from local municipalities is recycled into the geothermal reservoir where it is converted into steam for electricity production. This "win-win" situation provides an environmentally sound wastewater discharge solution for neighboring cities while increasing the productivity and extending the life of the geothermal resource.
Based in San Jose, Calif., Calpine Corporation is a leading independent power company that is dedicated to providing wholesale and industrial customers with clean, efficient, natural gas-fired and geothermal power generation. It generates and markets power through plants it owns, operates, leases, and develops in 23 states in the United States, three provinces in Canada and in the United Kingdom. Calpine also owns approximately 1.0 trillion 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 its website at www.calpine.com.
Source: Calpine Corporation