SAN JOSE, Calif., Aug. 4, 2003 — Calpine Corp. on Monday announced plans to sell its unconsolidated, 50-percent interest in the 240-megawatt Gordonsville Power Plant to Dominion Virginia Power, an affiliate of Dominion.
Under the terms of the transaction, Calpine will receive a $31.5 million cash payment, which includes a $26 million payment from Dominion and a separate $5.5 million payment from the project for return of a debt service reserve.
Calpine’s 50-percent share of the project’s non-recourse debt at closing was approximately $44 million. The company expects to complete the transaction in the fourth quarter of 2003, pending regulatory and other third-party approvals. Calpine acquired its interest in the natural gas-fired facility in 1997.
Located in Gordonsville, Va., the facility was commissioned in 1993 and provides electricity to Dominion under power sales agreements ending in 2024. As a cogenerator, the Gordonsville facility also supplies steam to Rapidan Services, the local water authority, under a long-term steam sales agreement.
The Gordonsville sale represents another capital-raising event involving Calpine’s Qualifying Facilities (QFs). Calpine Senior Vice President Carolyn Marsh stated, “Enhancing liquidity while sustaining long-term value continues to be one of Calpine’s highest priorities. In addition to the Gordonsville transaction, we’ve sold the De Pere Energy Center, completed the Newark and Parlin financing, and sold an equity interest in the King City Power Plant.
Calpine continues to enhance liquidity through its QF program and is currently evaluating additional opportunities.” As a cogenerator, the Gordonsville Power Plant is considered a QF under the Public Utility Regulatory Policies Act of 1978. QFs were established to foster development of new fuel-efficient and renewable energy resources, including cogeneration, geothermal, solar and wind.
Cogeneration facilities like Gordonsville produce electricity and then recycle the waste heat to create steam for industrial processing. Calpine Corporation is a leading 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 22 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 one trillion 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.