SAN JOSE, Calif., Aug. 11, 2004 (PRNewswire-FirstCall) — Calpine Corporation welcomed an announcement by the Schwarzenegger Administration that it remains committed to a fair, open, and transparent wholesale energy market in California.
“The Governor’s vision for California’s energy future places the needs of California consumers ahead of all other concerns. His commitment to competitively procured power will deliver the best deal for utility customers in terms of price, risk, reliability, and environmental impact,” stated Calpine Chief Executive Officer and President Peter Cartwright. “By opposing AB 2006 as currently written, Governor Schwarzenegger is taking a major step towards restoring Wall Street’s faith that California is a safe place to invest the billions of dollars the state needs to get new power plants built and sustain the economy.”
After setting three consecutive power demand records last month, California currently faces some of the most taxing conditions the state’s power grid has endured since the energy crisis of 2001. The combination of heat and expanding economic activity further illustrates the need for California to act quickly in order to secure the energy assets needed to keep the lights on and sustain an economic recovery.
“In 2002, California signed into law a bill that corrected many of the fundamental problems with the state’s energy market. Since then, the direction of the California energy market has been repeatedly clouded by economic conditions as well as presumably well intentioned, but misguided, legislative proposals,” added Calpine Vice President Curt Hildebrand. “Due to the uncertainty this has created for investors and regulators, very few power plants are being built in California. Meanwhile demand for power continues to grow. Governor Schwarzenegger recognizes that California must act now in order to ensure power plants are constructed in a fashion that drives down costs to ratepayers and California has the power it needs.”
“Today’s Public Utilities Commission announcement of an accelerated resource adequacy process should not go un-noticed either,” Hildebrand added. “The PUC plays a vital role in keeping the power flowing and ensuring that power plants are bid on a competitive basis and built in a cost effective manner that best reflects the interests of ratepayers. A consistent vision shared between the Administration and the Commission represents significant progress for California.”
Calpine — California’s Power Company
Calpine is deeply committed to the California market. Three of the company’s large, modern power plants came on line in time to mitigate the energy crisis of 2001. An additional three large power plants — nearly 2,000 megawatts — are currently in construction, and four others totaling more than 3,000 megawatts are fully permitted and ready for construction to begin. Calpine has invested over $5 billion in California energy infrastructure and the company committed to invest an additional $3 billion if the state adopts sound energy policies.
Calpine — Celebrating 20 Years of Clean, Reliable Power
Calpine Corporation celebrates 20 years in power as a leading North American power company dedicated to providing electric power to customers from clean, efficient, natural gas-fired and geothermal power plants. 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 nation’s largest producer of renewable geothermal energy, and owns or controls approximately one trillion cubic feet equivalent of proved natural gas reserves in the United States and Canada. The company is listed on the S&P 500 and was named FORTUNE’s 2004 Most Admired Energy Company. The company was founded in 1984 and is publicly traded on the New York Stock Exchange under the symbol CPN. For more information, visit www.calpine.com.