Western Farmers Electric Cooperative to Purchase Capacity and Power from Calpine’s Oneta Energy Center from 2014-2035
March 05 2012 - 1:11PM
Business Wire
Calpine Corporation (NYSE:CPN) has agreed to supply Western
Farmers Electric Cooperative (WFEC) with electric generation
capacity and power from Calpine’s Oneta Energy Center (OEC) from
June 1, 2014, through 2035. Under the contract, WFEC initially will
purchase 160 megawatts of Oneta’s capacity, and that amount will
increase in increments up to a maximum of 280 megawatts in
2019-2035. The purchase of this capacity gives WFEC the right to
call on OEC for energy production from that capacity for an
additional charge reflecting variable production costs.
The clean, modern and highly efficient Oneta Energy Center,
located in Coweta, Oklahoma, is a combined-cycle power plant
capable of generating up to 1,134 megawatts of electricity using
natural gas produced in Oklahoma. WFEC is a power generation and
transmission cooperative headquartered in Anadarko, Oklahoma. It is
member owned by 23 distribution cooperatives in Oklahoma and New
Mexico and also supplies the Altus Air Force Base. Together, these
cooperatives provide electricity to more than half a million
people.
“This is a win-win-win transaction. For WFEC and its members,
our facility provides secure, reliable and affordable long-term
power supply,” said Thad Hill, Calpine’s Chief Operating Officer.
“For Calpine, the level of capacity payments approaching
replacement cost reflects the value of our modern and efficient
fleet as the nation moves toward greater natural gas-fired
generation. For Oklahoma, it means the use of power generated by
Oklahomans in Oklahoma from cleaner burning natural gas produced in
Oklahoma. We look forward to a long and mutually beneficial
relationship with Western Farmers Electric Cooperative.”
The contract is conditioned on certain approvals, including
securing satisfactory transmission service.
About Calpine
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.
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, 2011. 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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