Message-ID: <4618398.1075851588629.JavaMail.evans@thyme> Date: Tue, 28 Aug 2001 17:16:39 -0700 (PDT) From: vjw@cleanpower.org To: jeff.dasovich@enron.com Subject: Fw: [calrps] Calpine brags about "very favorable margins" in DWR contracts Mime-Version: 1.0 Content-Type: text/plain; charset=us-ascii Content-Transfer-Encoding: 7bit X-From: V. John White X-To: Dasovich, Jeff X-cc: X-bcc: X-Folder: \Dasovich, Jeff (Non-Privileged)\Dasovich, Jeff\Deleted Items X-Origin: DASOVICH-J X-FileName: Dasovich, Jeff (Non-Privileged).pst ----- Original Message ----- From: "Ben Paulos" To: ; "Don Fields" Sent: Tuesday, August 28, 2001 4:04 PM Subject: [calrps] Calpine brags about "very favorable margins" in DWR contracts > Calpine Benefiting From California Energy Crisis, Official Says > By Daniel Taub > > > San Jose, California, Aug. 28 (Bloomberg) -- Calpine Corp., a California > power producer, has benefited from the state's energy crisis by locking in > ``very favorable margins'' on long-term electricity sales, Senior Vice > President James Macias said. > > About 90 percent of the electricity Calpine is generating this year is being > sold under long-term agreements to the state, Macias said on a conference > call with analysts. A year ago, about 30 percent of Calpine's power was > under contract, he said. > > Calpine, one of the largest U.S. power-plant builders, has been buying > natural-gas fields to supply its power plants, spending about $1.9 billion > from March last year to July to boost gas reserves to 1.5 trillion cubic > feet. It also has bought gas in futures markets to help fix margins on > electricity sales, Macias said. > > ``The California crisis, while not desired, has been a tremendous > opportunity,'' Macias said. ``Calpine may be the only player emerging from > the crisis with no overhang issues. We are emerging stronger than ever.'' > > The long-term contracts have an average ``spark spread,'' or the difference > between revenue and the cost of fuel to generate the electricity, of $26.50 > a megawatt-hour, Macias said. One megawatt-hour is enough energy to light > 750 typical California homes for an hour. > > California has $43 billion in long-term energy contracts with Calpine and > other generators. The state's Department of Water Resources began buying > power on behalf of its three investor-owned utilities in January after the > two largest, owned by PG&E Corp. and Edison International, became insolvent > buying power for more than they were allowed to charge customers. > > San Jose, California-based Calpine expects $16 billion in revenue over the > next 20 years from contracts with the department, PG&E, the city of San > Francisco, the Sacramento Municipal Utility District and other agencies. > Most of the contracts are for 10 years or less. > > PG&E Payment > > Calpine is owed $267 million by PG&E's Pacific Gas & Electric, the state's > largest utility, which filed for bankruptcy protection in April after > accruing $9 billion in power-buying losses. Calpine expects to be paid with > interest after Pacific Gas submits its reorganization plan later this year, > Lisa Bodensteiner, Calpine's general counsel, said on the call. > > Calpine isn't owed money by Edison's Southern California Edison, which is > negotiating a rescue plan with state lawmakers to keep California's No. 2 > utility out of bankruptcy, Macias said. > > Shares of Calpine fell 45 cents to $33.25. They have dropped 26 percent this > year. > -- > *-*-*-*-*-*-*-*-*-*-*-* > > Bentham Paulos > Energy Foundation > ben@ef.org > > > ------------------------ Yahoo! Groups Sponsor ---------------------~--> > FREE COLLEGE MONEY > CLICK HERE to search > 600,000 scholarships! > http://us.click.yahoo.com/zoU8wD/4m7CAA/ySSFAA/TgOolB/TM > ---------------------------------------------------------------------~-> > > To unsubscribe from this group, send an email to: > calrps-unsubscribe@yahoogroups.com > > > > Your use of Yahoo! Groups is subject to http://docs.yahoo.com/info/terms/ > >