EUNICE, La., July 31, 2001 – Acadia Power Partners LLC, a 50/50 joint venture between Cleco Corporation and Calpine Corporation, today announced the signing of a long-term power purchase agreement for 580 megawatts of the output from the Acadia Power Project. The 20-year contract is with Calpine’s energy marketing subsidiary, Calpine Energy Services (CES).
Cleco Midstream Resources LLC, a wholly owned subsidiary of Cleco, and Calpine each own a 50 percent interest in Acadia Power Partners, which owns the combined-cycle plant currently under construction outside Eunice, La. The project is on schedule for completion in the summer of 2002.
Cleco President and CEO David Eppler said, “This agreement fits Cleco’s strategy of limiting our exposure to potential instability in the fuel and power markets while fulfilling our commitment to increase the reliability of south Louisiana’s power supply.”
Under the terms of the agreement, starting July 1, 2002, CES will supply the natural gas needed to generate 580 megawatts of electricity and will own and market the produced power. Acadia Power Partners has a similar agreement with Aquila Inc. for the other portion of the plant’s output. The partnership will operate and maintain the plant.
“The Acadia Power Project represents the next generation in high- efficiency power generation and is well positioned to compete in the Southwest Power Pool,” stated Calpine Energy Services Senior Vice President Paul Posoli. “Calpine Energy Services continually strives to add value and optimize Calpine’s expanding power generating fleet. By locking in a long-term supply of gas and electricity, we can lower production costs while significantly optimizing this low-cost generating asset.”
Cleco Corporation is a regional energy services company headquartered in Pineville, La. It operates a nonregulated midstream energy business that has approximately 1,700 megawatts of generating capacity either in operation or under construction. Cleco also operates a regulated electric utility company that serves about 250,000 customers across Louisiana. For more information about Cleco, visit http://www.cleco.com .
Based in San Jose, Calif., Calpine Corporation is dedicated to providing customers with reliable and competitively priced electricity. Calpine is focused on clean, efficient, natural gas-fired generation and is the world’s largest producer of renewable geothermal energy. Calpine has launched the largest power development program in North America. To date, the company has approximately 34,600 megawatts of base load capacity and 8,100 megawatts of peaking capacity in operation, under construction, pending acquisition and in announced development in 29 states, the UK and Canada. 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 its Website at http://www.calpine.com .