Dec. 23, 2003 — Calpine Corp. has entered into a definitive agreement to sell its 50-percent interest in the 545- MW Lost Pines 1 Power Project to GenTex Power Corporation.
GenTex, Calpine’s partner since the plant was developed and went online in July of 2001, is an affiliate of the Lower Colorado River Authority (LCRA). Calpine remains the leading independent power producer in Texas, with more than 6,000 megawatts in operation.
Calpine Energy Services will enter into an agreement with LCRA to purchase 250 megawatts of electricity through December 31, 2004. The company expects to report a gain on the sale of the project when the transaction closes during the first quarter of 2004.
“Calpine will benefit from an attractive return on its investment,” stated Darrell Hayslip, Calpine senior vice president, marketing and sales. “In addition, LCRA will be able to meet its energy requirements without building new capacity. They will now be able to take even greater advantage of this modern, gas-fired, combined-cycle facility as the sole owner and operator.”
Calpine’s 50-percent interest in the Lost Pines project is owned by Calpine Construction Finance Company, L.P. (CCFC), which is a wholly owned subsidiary of Calpine, and is included in the security package for CCFC’s $800 million secured note financing. CCFC expects to approach the holders of these notes for their consent to reinvest the net proceeds from this sale into additional power generation assets.
LCRA is a nonprofit, self-funded conservation and reclamation district dedicated to providing public services to the people of Texas. LCRA generates and transmits wholesale electricity to cooperatives and city-owned utilities serving more than 1 million people.
LCRA also manages the lower Colorado River, protects the river’s water quality, sells water, develops and operates water and wastewater utilities, operates public parks, promotes soil, water and energy conservation, and offers economic and community development assistance to rural communities in its service area. For more information about LCRA, visit www.lcra.org.
Calpine Corp. is a North American power company dedicated to providing electric power to wholesale and industrial customers from clean, efficient, natural gas-fired and geothermal power facilities. The company generates power at plants it owns or leases in 21 states in the United States, three provinces in Canada and in the United Kingdom. Calpine is also the world’s largest producer of renewable geothermal energy, and it owns approximately 900 billion cubic feet equivalent of proved natural gas reserves in Canada and the United States. The company was founded in 1984 and is publicly traded on the New York Stock Exchange under the symbol CPN. For more information about Calpine, visit www.calpine.com.