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Content-Type: text/plain; charset=us-ascii Content-Transfer-Encoding: 7bit X-From: V. John White <vjw@cleanpower.org< X-To: Dasovich, Jeff </O=ENRON/OU=NA/CN=RECIPIENTS/CN=JDASOVIC< X-cc: X-bcc: X-Folder: \Dasovich, Jeff (Non-Privileged)\Dasovich, Jeff\Deleted Items X-Origin: DASOVICH-J X-FileName: Dasovich, Jeff (Non-Privileged).pst ----- Original Message ----- From: "Ben Paulos" <ben@ef.org< To: <calrps@yahoogroups.com<; "Don Fields" <FLAK2@aol.com< Sent: Tuesday, August 28, 2001 4:04 PM Subject: [calrps] Calpine brags about "very favorable margins" in DWR contracts < Calpine Benefiting From California Energy Crisis, Official Says < By Daniel Taub < < < San Jose, California, Aug. 28 (Bloomberg) -- Calpine Corp., a California < power producer, has benefited from the state's energy crisis by locking in < ``very favorable margins'' on long-term electricity sales, Senior Vice < President James Macias said. < < About 90 percent of the electricity Calpine is generating this year is being < sold under long-term agreements to the state, Macias said on a conference < call with analysts. A year ago, about 30 percent of Calpine's power was < under contract, he said. < < Calpine, one of the largest U.S. power-plant builders, has been buying < natural-gas fields to supply its power plants, spending about $1.9 billion < from March last year to July to boost gas reserves to 1.5 trillion cubic < feet. It also has bought gas in futures markets to help fix margins on < electricity sales, Macias said. < < ``The California crisis, while not desired, has been a tremendous < opportunity,'' Macias said. ``Calpine may be the only player emerging from < the crisis with no overhang issues. We are emerging stronger than ever.'' < < The long-term contracts have an average ``spark spread,'' or the difference < between revenue and the cost of fuel to generate the electricity, of $26.50 < a megawatt-hour, Macias said. One megawatt-hour is enough energy to light < 750 typical California homes for an hour. < < California has $43 billion in long-term energy contracts with Calpine and < other generators. The state's Department of Water Resources began buying < power on behalf of its three investor-owned utilities in January after the < two largest, owned by PG&E Corp. and Edison International, became insolvent < buying power for more than they were allowed to charge customers. < < San Jose, California-based Calpine expects $16 billion in revenue over the < next 20 years from contracts with the department, PG&E, the city of San < Francisco, the Sacramento Municipal Utility District and other agencies. < Most of the contracts are for 10 years or less. < < PG&E Payment < < Calpine is owed $267 million by PG&E's Pacific Gas & Electric, the state's < largest utility, which filed for bankruptcy protection in April after < accruing $9 billion in power-buying losses. Calpine expects to be paid with < interest after Pacific Gas submits its reorganization plan later this year, < Lisa Bodensteiner, Calpine's general counsel, said on the call. < < Calpine isn't owed money by Edison's Southern California Edison, which is < negotiating a rescue plan with state lawmakers to keep California's No. 2 < utility out of bankruptcy, Macias said. < < Shares of Calpine fell 45 cents to $33.25. They have dropped 26 percent this < year. < -- < *-*-*-*-*-*-*-*-*-*-*-* < < Bentham Paulos < Energy Foundation < ben@ef.org < < < ------------------------ Yahoo! Groups Sponsor ---------------------~--< < FREE COLLEGE MONEY < CLICK HERE to search < 600,000 scholarships! < http://us.click.yahoo.com/zoU8wD/4m7CAA/ySSFAA/TgOolB/TM < ---------------------------------------------------------------------~-< < < To unsubscribe from this group, send an email to: < calrps-unsubscribe@yahoogroups.com < < < < Your use of Yahoo! Groups is subject to http://docs.yahoo.com/info/terms/ < <
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