HAYWARD, Calif.--(BUSINESS WIRE)--Apr. 16, 2009--
Calpine Corporation (NYSE:CPN) and GE (NYSE:GE) unit GE Energy Financial
Services announced today that the California Public
Utilities Commission has approved an amended Power Purchase Agreement
for a state-of-the-art combined-cycle natural gas power plant, Russell
City Energy Center, to be built in Hayward.
The agreement calls for Russell City Energy Company, LLC – owned 65
percent by a Calpine Corporation affiliate and 35 percent by a GE Energy
Financial Services affiliate – to sell its full 600-megawatt output to
Pacific Gas & Electric (PG&E). In addition, PG&E will supply natural gas
to the plant for the entire ten-year term of the contract, which is
expected to begin in mid-year 2012.
“Approval of the amended Power Purchase Agreement brings the Bay Area
one step closer to reaping the benefits of the Russell City Energy
Center, which will power 600,000 homes with reliable and environmentally
responsible power – meeting the region’s growing demand for new energy
sources,” said Thad Hill, Executive Vice President and Chief Commercial
Officer for Calpine.
Calpine designed the facility using the best available emissions
controls. It will be 40 percent more fuel efficient and significantly
cleaner than comparable older technology plants by using advanced
“combined-cycle” technology, which captures exhaust from gas turbines
and generates additional energy in a steam turbine. In addition to
providing a clean, local source of electricity, Russell City will be one
of Hayward’s largest users of recycled water.
The Russell City Energy Center will create 650 union construction jobs
and inject millions of dollars into the local economy. The project also
is expected to generate approximately $30 million in one-time tax
revenue and $4 million annually in new property tax revenue. Calpine has
reached an agreement with the City of Hayward to fund $10 million in
community benefits that will improve the quality of life for Hayward
“Today's approval of the amended Power Purchase Agreement for the
Russell City power plant project marks another crucial step in our work
with our experienced partner, Calpine, to bring a critical new
infrastructure asset to the San Francisco Bay Area,” said Mark Mellana,
a Managing Director of Operating and Development at GE Energy Financial
The Power Purchase Agreement, originally signed in 2006, was amended in
2008 to reflect a new facility online date and contract price. The
amended agreement received the endorsement of the Department of
Ratepayer Advocates, The Utility Reform Network and California Unions
for Reliable Energy.
Calpine, one of California's largest power providers, currently operates
37 power plants in the state, which combined are capable of generating
more than 5,200 megawatts of electricity. This is equivalent to almost
10 percent of peak California power demand and is enough electricity to
power more than 5 million Californian households. Calpine also is the
state's largest renewable energy provider.
Calpine Corporation is helping meet the needs of an economy that demands
more and cleaner sources of electricity. Founded in 1984, Calpine is a
major U.S. power company, currently capable of delivering over 24,000
megawatts of clean, cost-effective, reliable and fuel-efficient
electricity to customers and communities in 16 states in the United
States and Canada. Calpine owns, leases and operates low-carbon, natural
gas-fired and renewable geothermal power plants. Using advanced
technologies, Calpine generates electricity in a reliable and
environmentally responsible manner for the customers and communities it
serves. Please visit www.calpine.com
for more information.
About GE Energy Financial Services
GE Energy Financial Services’ experts invest globally with a long-term
view, backed by the best of GE’s technical know-how, financial strength
and rigorous risk management, across the capital spectrum, in one of the
world’s most capital-intensive industries, energy. GE Energy Financial
Services helps its customers and GE grow through new investments, strong
partnerships and optimization of its more than $22 billion in assets. GE
Energy Financial Services is based in Stamford, Connecticut. For more
information, visit www.geenergyfinancialservices.com.
GE is a diversified global infrastructure, finance and media company
that is built to meet essential world needs. From energy, water,
transportation and health to access to money and information, GE serves
customers in more than 100 countries and employs more than 300,000
people worldwide. For more information, visit the company's Web site at http://www.ge.com.
GE is Imagination at Work.
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 December 31, 2008. These filings are available by visiting
the Securities and Exchange Commission's web site at www.sec.gov
or Calpine's web site at 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.
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Source: Calpine Corporation
Norma F. Dunn, 713-830-8883 (Media Relations)
Walker, 713-830-8775 (Investor Relations)
Andy Katell, 203-961-5773 (Media Relations)