HOUSTON, May 07, 2012 (BUSINESS WIRE) --Calpine Corporation (NYSE:CPN) announced today that it has executed Resource Adequacy contracts (RA contracts) with California's three investor-owned utilities - Pacific Gas and Electric Company, Southern California Edison Company and San Diego Gas and Electric Company (the Utilities) - for the purchase of resource adequacy from the Sutter Energy Center (Sutter) for the period from July 1 through December 31, 2012. The RA contracts will enable Sutter to continue in operation as the California Public Utilities Commission (the Commission) moves forward in developing long-term capacity procurement policies to ensure modern, existing resources remain available to meet California's future power demands.
The RA contracts are being submitted for approval to the Commission pursuant to Resolution E-4471, in which the Commission directed the Utilities to enter into contract negotiations with Calpine for the purpose of keeping the Sutter plant online through 2012. The resolution requires the Utilities to submit a Tier 2 Advice letter attaching the RA contracts, which filings were made on May 4, 2012.
Located near Yuba City, California, Sutter is one of the state's newest and cleanest natural gas-fired power plants. This modern, efficient, air cooled, combined-cycle power generation facility has the capacity to produce up to 578 megawatts of electricity. It commenced commercial operation in 2001 and is a vital contributor to the local Sacramento Valley economy, generating more than $2.6 million in annual property tax revenue and employing 26 local residents with an annual payroll of approximately $3 million.
Sutter received strong support throughout this process from many elected officials, including United States Congressman John Garamendi, California State Senator Doug LaMalfa and State Assemblyman Jim Nielson, as well as representatives of the Yuba City and Sutter and Yuba County business community, a number of whom provided testimony at Commission public meetings outlining how critical the continued operation of Sutter Energy Center is to the local economy.
Calpine Corporation is the largest independent power producer in the U.S., with a fleet of 93 power generation plants representing more than 28,000 megawatts of generation capacity. Last year our plants generated more than 94 million megawatt hours of power for our wholesale customers in 20 states and Canada. Our 91 operating plants as well as two under construction consist primarily of natural gas-fired and renewable geothermal power plants that use advanced technologies to generate power in a low-carbon and environmentally responsible manner. Our modern, clean, efficient and cost-effective fleet stands ready to respond to the increased need for cleaner and more affordable power as the economy recovers, as new environmental rules are implemented and force older, dirtier plants to retire or reduce generation, as variable renewable power generation from wind and solar grows and with it the need for flexible natural gas generation to assure firm supply to the grid, and finally, as natural gas becomes economically competitive with coal as a fuel for power generation. Please visit www.calpine.com to learn more about why Calpine is a generation ahead - today.
In addition to historical information, this release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Words such as "believe," "intend," "expect," "anticipate," "plan," "may," "will" and similar expressions identify forward-looking statements. Such statements include, among others, those concerning expected financial performance and strategic and operational plans, as well as assumptions, expectations, predictions, intentions or beliefs about future events. You are cautioned that any such forward-looking statements are not guarantees of future performance and that a number of risks and uncertainties could cause actual results to differ materially from those anticipated in the forward-looking statements. Please see the risks identified in this release or in Calpine's reports and registration statements filed with the Securities and Exchange Commission, including, without limitation, the risk factors identified in its Annual Report on Form 10-K for the year ended Dec. 31, 2011. These filings are available by visiting the Securities and Exchange Commission's website at http://www.sec.gov or Calpine's website at http://www.calpine.com. Actual results or developments may differ materially from the expectations expressed or implied in the forward-looking statements, and Calpine undertakes no obligation to update any such statements.
SOURCE: Calpine Corporation
Norma F. Dunn, 713-830-8883
Bryan Kimzey, 713-830-8775