Calpine Announces Bidding Results for Sale of Partially Completed Power Plant Near Alexander City, Alabama
February 06 2008 - 6:38PM
PR Newswire (US)
SAN JOSE, Calif. and HOUSTON, Feb. 6 /PRNewswire-FirstCall/ --
Calpine Corporation (NYSE:CPN-WI) announced today that it has
successfully completed a Court-approved bidding process for a
partially completed power plant located near Alexander City, Ala.
(the Hillabee Project). Pursuant to a sale auction held Feb. 5,
2008, CER Generation, LLC, a subsidiary of Constellation Energy
(NYSE:CEG), will pay approximately $155 million (net of certain
offsets) for the asset. The auction was held as part of Calpine's
recently completed Chapter 11 restructuring. The auction resulted
in bids that exceeded the initially-proposed sale price of $122.5
million as established by an Asset Purchase Agreement dated Dec.
21, 2007, between Calpine's Hillabee Energy Center, LLC affiliate
and CER Generation. The U.S. Bankruptcy Court for the Southern
District of New York has approved the sale, which remains subject
to final regulatory approvals. "The Hillabee Project was determined
to be a non-strategic asset in the context of our recent Chapter 11
restructuring," said Robert P. May, Calpine's Chief Executive
Officer. "We are extremely pleased with the success we have
achieved with our strategic divestiture program and are now moving
forward with one of the cleanest and most modern power generation
fleets in the nation." The Hillabee Project is designed to be a
clean and highly efficient 774-megawatt combined-cycle generating
facility driven by two Siemens-Westinghouse 501G combustion
turbines. Calpine initiated construction activities at the site in
2001 but subsequently placed the project on hold due to adverse
market conditions. 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 nearly 24,000 megawatts of clean,
cost-effective, reliable, and fuel-efficient electricity to
customers and communities in 18 states in the U.S. The company
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 http://www.calpine.com/ for more information. In
addition to historical information, this release contains
forward-looking statements within the meaning of Section 27A of the
Securities Act and Section 21E of the Exchange Act. We use words
such as "believe," "intend," "expect," "anticipate," "plan," "may,"
"will" and similar expressions to identify forward-looking
statements. Such statements include, among others, those concerning
our expected financial performance and strategic and operational
plans, as well as all 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. Such risks and uncertainties
include, but are not limited to: (i) the risks and uncertainties
associated with our Chapter 11 cases and Companies' Creditors
Arrangement Act (CCAA) proceedings of certain of Calpine's Canadian
affiliates, including our ability to successfully reorganize and
emerge from Chapter 11; (ii) our ability to implement our business
plan; (iii) financial results that may be volatile and may not
reflect historical trends; (iv) seasonal fluctuations of our
results; (v) potential volatility in earnings associated with
fluctuations in prices for commodities such as natural gas and
power; (vi) our ability to manage liquidity needs and comply with
covenants related to our existing financing obligations and
anticipated exit financing; (vii) the direct or indirect effects on
our business of our impaired credit including increased cash
collateral requirements in connection with the use of commodity
contracts; (viii) transportation of natural gas and transmission of
electricity; (ix) the expiration or termination of our power
purchase agreements and the related results on revenues; (x) risks
associated with the operation of power plants including unscheduled
outages; (xi) factors that impact the output of our geothermal
resources and generation facilities, including unusual or
unexpected steam field well and pipeline maintenance and variables
associated with the waste water injection projects that supply
added water to the steam reservoir; (xii) risks associated with
power project development and construction activities; (xiii) our
ability to attract, retain and motivate key employees; (xiv) our
ability to attract and retain customers and contract
counterparties; (xv) competition; (xvi) risks associated with
marketing and selling power from plants in the evolving energy
markets; (xvii) present and possible future claims, litigation and
enforcement actions; (xviii) effects of the application of laws or
regulations, including changes in laws or regulations or the
interpretation thereof; and (xix) other risks identified from
time-to-time in Calpine's reports and registration statements filed
with the SEC, including, without limitation, the risk factors
identified in its Annual Report on Form 10-K for the year ended
December 31, 2006 and Quarterly Reports on Form 10-Q. 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. Unless
specified otherwise, all information set forth in this release is
as of today's date and Calpine undertakes no duty to update this
information. For additional information about Calpine's chapter 11
reorganization or general business operations, please refer to
Calpine's Annual Report on Form 10-K for the fiscal year ended
December 31, 2006, Calpine's Quarterly Reports on Form 10-Q, and
any other recent Calpine report to the Securities and Exchange
Commission. 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/. DATASOURCE: Calpine
Corporation CONTACT: media, Mel Scott, +1-713-570-4553, ; or
investors, Norma Dunn, +1-713-830-8883, , both of Calpine
Corporation Web site: http://www.calpine.com/
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