Xcel Energy to Purchase Calpine Plants
April 05 2010 - 9:00AM
Business Wire
Xcel Energy (NYSE:XEL) and Calpine Corporation (NYSE:CPN) today
announced that Public Service Company of Colorado (PSCo), an Xcel
Energy company, will purchase two of Calpine’s power plants
near Denver, which currently provide power to the
utility under power purchase agreements.
The $739 million acquisition stems from an offer by Calpine into
a competitive bid process that was part of Xcel Energy’s 2007
Colorado Resource Plan, and was the least cost option among many
bids for needed generating resources. The agreement is dependent on
regulatory agency approval.
The plants to be purchased are the 621-megawatt Rocky Mountain
Energy Center, located near Hudson, Colo., which began commercial
operation in 2004, and produces electricity using efficient
combined-cycle technology, and the 310-megawatt simple-cycle Blue
Spruce Energy Center, located in Aurora, Colo., which began
operation in 2003. The plants can collectively provide enough
electrical power to meet the needs of approximately 700,000
Colorado households.
“This agreement will be good for our customers because these
assets, which are already an integral part of our system, will
continue to provide reliable and reasonably priced energy for many
years,” said David Eves, president and CEO of Public Service
Company of Colorado, an Xcel Energy company. “Knowing that these
plants will be part of our long-term generation mix will also help
us to more effectively manage system reliability as we strive to
meet the state’s newly increased renewable energy standard.”
Thad Hill, Calpine’s Chief Commercial Officer, added, “We have
been pleased to provide PSCo with clean, efficient and reliable
energy solutions for Colorado ratepayers since 2003. We are
confident that the 931 MW of capacity developed and operated by
Calpine will continue to serve Colorado’s energy needs for the
foreseeable future. We appreciate the hard work and dedication of
the energy professionals that have operated these facilities during
our ownership.”
Xcel Energy is a major U.S. electricity and natural gas company
that provides a comprehensive portfolio of energy-related products
and services to 3.4 million electricity customers and 1.9 million
natural gas customers through its regulated operating companies in
eight Western and Midwestern states. Company headquarters are
located in Minneapolis. More information is available at
xcelenergy.com.
Founded in 1984, Calpine Corporation is a major U.S. power
company, currently capable of delivering nearly 25,000 megawatts of
clean, cost-effective, reliable and fuel-efficient power to
customers and communities in 16 states in the United States and
Canada. Calpine Corporation is committed to helping meet the needs
of an economy that demands more and cleaner sources of electricity.
Calpine owns, leases and operates low-carbon, natural gas-fired and
renewable geothermal power plants. Using advanced technologies,
Calpine generates power in a reliable and environmentally
responsible manner for the customers and communities it serves.
Please visit our Web site at www.calpine.com for more
information.
This news release includes forward-looking statements that are
subject to certain risks, uncertainties and assumptions. Such
forward-looking statements are intended to be identified in this
document by the words “will," "can," "anticipate,” “expect,”
“potential” and similar expressions, and include, among others,
those concerning expected strategic and operational plans, as well
as assumptions, expectation, intentions or beliefs about future
events. Actual results may vary materially and Xcel Energy and PSCo
undertake no obligation to update such statements. Factors that
could cause actual results to differ materially include, but are
not limited to, those risk factors listed from time to time by Xcel
Energy and PSCo in reports filed with the Securities and Exchange
Commission (SEC), including Risk Factors in Item 1A and Exhibit
99.01 of each of Xcel Energy’s and PSCo’s Annual Report on Form
10-K for the year ended Dec. 31, 2009.
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, 2009. 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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