Message-ID: <1957512.1075844046740.JavaMail.evans@thyme> Date: Mon, 26 Jun 2000 07:24:00 -0700 (PDT) From: lorna.brennan@enron.com To: john.goodpasture@enron.com, michael.ratner@enron.com, roger.westfall@enron.com, steve.thomas@enron.com, doug.aschwege@enron.com, judy.beck@enron.com, ken.anderson@enron.com, bryan.reinecke@enron.com, robert.johnson@enron.com, carolyn.descoteaux@enron.com, becki.souci@enron.com, gary.choquette@enron.com, ld.stephens@enron.com, rockey.storie@enron.com, kent.miller@enron.com, john.dushinske@enron.com, dave.neubauer@enron.com, jeffery.fawcett@enron.com, lorraine.lindberg@enron.com, kevin.hyatt@enron.com, christine.stokes@enron.com, tk.lohman@enron.com, michelle.lokay@enron.com, lindy.donoho@enron.com, michael.bodnar@enron.com, joni.bollinger@enron.com, david.badura@enron.com, janet.bowers@enron.com, craig.buehler@enron.com, bob.burleson@enron.com, allen.cohrs@enron.com, john.fiscus@enron.com, steve.gilbert@enron.com, morgan.gottsponer@enron.com, james.harvey@enron.com, stephen.herber@enron.com, dana.jones@enron.com, stephanie.korbelik@enron.com, bill.mangels@enron.com, penny.mccarran@enron.com, vernon.mercaldo@enron.com, larry.pavlou@enron.com, eileen.peebles@enron.com, tony.perry@enron.com, loren.penkava@enron.com, ken.powers@enron.com, chris.sebesta@enron.com, frank.semin@enron.com, neal.shaw@enron.com, larry.swett@enron.com, kay.threet@enron.com, mike.ullom@enron.com, lisa.valley@enron.com, chuck.wilkinson@enron.com, jim.wiltfong@enron.com, jo.williams@enron.com, karen.lagerstrom@enron.com, ray.stelly@enron.com, bob.stevens@enron.com, sue.neville@enron.com, mike.barry@enron.com, martha.janousek@enron.com, kimberly.watson@enron.com, don.powell@enron.com, steve.weller@enron.com, michael.stage@enron.com, tim.johanson@enron.com, laura.lantefield@enron.com, frank.oldenhuis@enron.com, jeff.nielsen@enron.com, tracy.schwartzkopf@enron.com, robert.mason@enron.com, sean.bolks@enron.com, miriam.martinez@enron.com Subject: Two Announcements on Power: Calpine Acquires SkyGen and Panda and Calpine Form Alliance Mime-Version: 1.0 Content-Type: text/plain; charset=us-ascii Content-Transfer-Encoding: 7bit X-From: Lorna Brennan X-To: John Goodpasture, Michael Ratner, Roger Westfall, Steve Thomas, Doug Aschwege, Judy Beck, Ken Anderson, Bryan Reinecke, Robert L Johnson, Carolyn DesCoteaux, Becki Sans Souci, Gary Choquette, LD Stephens, Rockey Storie, Kent Miller, John Dushinske, Dave Neubauer, Jeffery Fawcett, Lorraine Lindberg, Kevin Hyatt, Christine Stokes, TK Lohman, Michelle Lokay, Lindy Donoho, Michael Bodnar, Joni Bollinger, David Badura, Janet Bowers, Craig Buehler, Bob Burleson, Allen Cohrs, John Fiscus, Steve Gilbert, Morgan Gottsponer, James Harvey, Stephen Herber, Dana Jones, Stephanie Korbelik, Bill Mangels, Penny McCarran, Vernon Mercaldo, Larry Pavlou, Eileen Peebles, Tony Perry, Loren Penkava, Ken Powers, Chris Sebesta, Frank Semin, Neal Shaw, Larry Swett, Kay Threet, Mike Ullom, Lisa Valley, Chuck Wilkinson, Jim Wiltfong, Jo Williams, Karen Lagerstrom, Ray Stelly, Bob Stevens, Sue M Neville, Mike Barry, Martha Janousek, Kimberly Watson, Don Powell, Steve Weller, Michael G Stage, Tim Johanson, Laura Lantefield, Frank Oldenhuis, Jeff Nielsen, Tracy Schwartzkopf, Robert Mason, Sean Bolks, Miriam Martinez X-cc: X-bcc: X-Folder: \Michelle_Lokay_Dec2000_June2001_1\Notes Folders\Articles X-Origin: LOKAY-M X-FileName: mlokay.nsf News Briefs: +Calpine to Acquire SkyGen Energy Calpine Corp. said it plans to acquire SkyGen Energy LLC (SkyGen Energy) from Michael Polsky and from Wisvest Corp., a Wisconsin Energy Corp. affiliate, for $450 million, plus the assumption of certain obligations of SkyGen Energy. The SkyGen Energy acquisition -- along with other recently announced acquisitions -- would increase Calpine's 2004 operating portfolio to over 40,000 MW of generation. Upon closing of the transaction, expected during the third quarter of 2000, Calpine will increase its power portfolio by up to 13,500 MW of natural gas-fired generation in the U.S., and will acquire 34 General Electric 7 FA gas turbines. Under terms of the agreement, Calpine will add three operating facilities (780 MW), three projects under construction (812 MW), 13 late-stage development facilities (5,258 MW) and 16 project development opportunities (6,615 MW). SkyGen was founded by Michael Polsky in 1991. SkyGen will continue to develop its portfolio of development projects as a wholly owned subsidiary of Calpine. Michael Polsky will serve as President of SkyGen and as a member of Calpine's Board of Directors. To fund the SkyGen Energy and other recently announced acquisitions, Calpine has obtained a $1 billion short-term credit facility with The Bank of Nova Scotia, Credit Suisse First Boston and CIBC World Markets. The company expects to refinance this facility in the capital markets. ********** +Panda, Calpine Form Business Alliance Panda Energy International and Calpine Corp. formed a business alliance involving eight power plant projects Panda has under development, representing nearly 10,000 MW of generating capacity. Under terms of the agreement, Panda will provide development capabilities and carry each of the projects to the construction phase. Calpine will have exclusive rights to construct, own and operate the plants. Panda will participate in 50% of the cash flow, above Calpine's priority return, in all the projects within the alliance. Included in the pact is the acquisition by Calpine of 24 General Electric 7FA combustion gas turbines and 12 steam turbines scheduled for delivery in 2001 to 2002. The first project to be developed under the alliance will be the Oneta Power Partners, L.P., a 1,000 MW natural gas-fueled power plant now being built in Coweta, OK. Under terms of the agreement, Calpine will pay Panda approximately $126 million, which includes reimbursement of development costs, payments for the gas and steam turbines and the Oneta facility. The Oneta transaction is expected to close in July. It is scheduled to go into service in 2002.