Calpine Completes Sale of 25% Undivided Interest in Freestone Energy Center to Rayburn Country Electric Cooperative
December 08 2010 - 3:08PM
Business Wire
Calpine Corporation (NYSE:CPN) today completed the sale of a 25%
undivided interest in the 1,038-megawatt Freestone Energy Center to
Rayburn Country Electric Cooperative, Inc. (Rayburn) for $215
million, or $830 per kilowatt.
Calpine remains the majority owner of the combined-cycle,
natural gas-fired plant, which is located near Fairfield, Texas, in
the North Zone of ERCOT. Rayburn will receive 25% of the net
economic benefit of the plant’s output. Calpine will continue to
operate the plant and will receive annual operating and management
fees from Rayburn in addition to the sales price.
The transaction represents Rayburn’s first acquisition of
ownership interest in a power plant. Headquartered in Rockwall,
Texas, Rayburn is a rural electric generation and transmission
cooperative which provides the wholesale power requirements for
five rural electric distribution cooperatives. Rayburn’s member
cooperatives include Fannin County Electric Cooperative Inc.,
Farmers Electric Cooperative Inc., Grayson-Collin Electric
Cooperative Inc., Lamar County Electric Cooperative Association and
Trinity Valley Electric Cooperative Inc., which together provide
electric service in sixteen counties in North Central and Northeast
Texas.
Freestone Energy Center, which began commercial operation in
June 2002, is a natural gas-fired combined-cycle facility. In 2009,
it earned Bronze Member status in the Texas Commission on
Environmental Quality’s Clean Texas Program. Using advanced
technology, the Freestone plant generates power first via four
electricity-producing natural gas turbines. Then it uses heat from
that process to create steam that drives two steam turbines. This
highly fuel-efficient approach allows Calpine to dramatically
reduce emissions compared to older fossil-fuel facilities. A
combined-cycle facility consumes about 40 percent less natural gas
per megawatt-hour-produced than older technology plants, making it
a cost-effective and low-carbon source of electricity.
About Calpine
Founded in 1984, Calpine Corporation is a major U.S. power
company, currently capable of delivering approximately 27,500
megawatts of clean, cost-effective, reliable and fuel-efficient
power from its 91 operating plants to customers and communities in
20 U.S. 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 website at
www.calpine.com for more information.
Forward-Looking Information
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, and its Quarterly
Report on Form 10-Q for the quarter ended Sept. 30, 2010. These
filings are available by visiting the Securities and Exchange
Commission’s website at www.sec.gov or Calpine’s website 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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