The high bid exceeds the initially proposed sale price of
'The Fremont Project was determined to be a non-strategic asset in the context of our successful Chapter 11 restructuring,' according to Robert P. May, Calpine's Chief Executive Officer. 'We are extremely pleased with the bidding results for the divestiture of this asset and are now looking ahead to emerging from bankruptcy in the very near future as a stronger and more competitive power company.'
The Fremont Project is a partially completed natural gas-fueled power plant located in Fremont, (Sandusky County) Ohio. Fremont is a clean and highly efficient combined-cycle generating facility capable of generating 550- megawatts of baseload capacity and up to 700-megawatts of total capacity. 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.
Forward Looking 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
SOURCE Calpine Corporation