Calpine signs San Francisco public utilities commission as long-term customer

SAN JOSE, Calif., May 9, 2001 — San Jose, Calif.-based Calpine Corporation announced today a long-term energy program that will help meet San Francisco's energy requirements.

Late yesterday, the San Francisco Board of Supervisors approved Calpine's emergency energy proposal to the San Francisco Public Utilities Commission (SFPUC). Under the terms of this $176 million contract, Calpine will provide San Francisco with 50 megawatts of electricity 24 hours-a-day for five years starting July 1, 2001.

Calpine Senior Vice President James Macias commented, "It is gratifying for Calpine to be able to provide real-time, affordable energy solutions for San Francisco. We recognize electricity is vital to sustaining our quality of life and economy. We are pleased to be helping San Francisco through this energy crisis."

Calpine's pricing structure conveys substantial up-front benefits to the City. By minimizing the need for high cost short-term purchases, Hetch Hetchy will reduce its power purchase costs in the first year by about $37 million.

"Calpine's innovative energy package was designed to meet San Francisco's need for a reliable and low-cost power supply. Our program is especially critical for the City to help weather this summer's high-priced and volatile peak power demand period," added Macias.

SFPUC President Victor G. Makras lauded the Board's approval, noting, "This contract will significantly reduce the likelihood that Hetch Hetchy will need to rely upon subsidies from the City's General Fund over the next five years. In addition to stabilizing Hetch Hetchy's costs throughout the duration of the volatile California power crisis, this contract will assure that Hetch Hetchy has sufficient funds to support vital capital repairs of its water and power facilities. In addition, this contract serves as a hedge against drought. We are fortunate to have negotiated a long-term contract at these beneficial rates. A great burden has been lifted from the City's shoulders."

This contract is a feather in the cap of newly appointed Acting General Manager, Lawrence Klein, an eight-year veteran of the SFPUC. "Our staff worked mega-hours to create this carefully crafted contract. In the current climate of extreme price volatility and persistent power supply shortages, this five year contract is a significant accomplishment."

Laurie Park, Acting General Manager of the SFPUC's Hetch Hetchy Water & Power division, conducted the nuts and bolts of the contract negotiations.

According to Park, "Throughout this process, Calpine defied industry practices and held its prices while we struggled to negotiate terms that were consistent with City policies and laws while providing Calpine sufficient assurance that they would be treated fairly. I don't know of any other marketer that would have been willing to hold a price firm for one month while the market continued to fluctuate wildly. For me, this experience illustrated markedly the benefit of working with a California-based power supplier that is concerned about building and maintaining long term relationships. A company solely interested in locking in the profit on a financial transaction would not have been willing to work so hard with us to help the City achieve its budgetary goals."

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 31,200 megawatts of base load capacity and 6,800 megawatts of peaking capacity in operation, under construction, and in announced development in 28 states 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 www.calpine.com.

Sponsored by FLSmidth

Related Articles

Duke Energy Florida argues for late change in supply plan

The NRG Florida LP unit of NRG Energy (NYSE: NRG), which wants to sell power to Duke Energy Florida from its power plant in Florida, or sell the plant itself to Duke, isn’t happy with a new Duke plan to buy a competitor’s power plant instead.

Calpine to buy gas-fired power plant from Exelon for $530mn

Follow Power Engineering on Twitter

Products Showcase

Dynamic Fluoride Ion cleaning DFIC of industrial natural gas turbines Hi-Tech Furnace Systems

Dynamic Fluoride Ion Cleaning of IGT Parts

The Dynamic Fluoride Ion Cleaning (DFIC) Process from Hi-Tech Furnace Systems is able to clean deep, narrow cracks of oxides by cycling between negative, atmospheric, and positive pressure.

Latest News

Shutterstock coal production trucks

Weekly Coal Production

The Weekly Coal Production shows how much coal is being produced across the U.S.

Federal Reserve Bank of Dallas Weekly Economic Indicators financial business

The Federal Reserve Bank of Dallas' Economic Indicators

The Federal Reserve Bank of Dallas offers a glimpse into how the markets are doing domestical...

Kvaerner awarded contract for gas-fired power plant in Delaware

Kvaerner North American Construction Inc. and its joint venture partner, Parsons Brinckerhoff...

Canadian Solar purchases two solar projects

Canadian Solar Inc. has acquired a majority interest in two utility-scale solar power project...

Operators Restart Unit 2 at PPL Susquehanna

Unit 2 at the PPL Susquehanna nuclear power plant near Berwick, Pa. resumed generating electr...

Settlement agreement limits cost recovery at Edwardsport

The Indiana Utility Regulatory Commission (IURC) on Dec. 27 modified and approved a settlemen...

Toshiba in talks to sell portion of Westinghouse nuclear unit

Toshiba Corp is in talks  to sell up to 16% of its stake in the Westinghouse Electric Co...

Utah nixes nuclear waste storage facility

Plans to park radioactive waste at a storage facility in Utah have been officially called off.

Archived Articles

2000 | 2001 | 2002 | 2003 | 2004 | 2005 | 2006 | 2007 | 2008 | 2009 | 2010 | 2011 | 2012 | 2013

Power Engineering Current Issue

10/01/2014
Volume 118, Issue 10
1410pe-cover

Power Industry Wire News

Vantage Drilling Company Reports Third Quarter 2014 Results

Vantage Drilling Company Reports Third Quarter 2014 Results

Top Industrial Market News Stories for the Last Week of October 2014, an Industrial Info News Alert

Top Industrial Market News Stories for the Last Week of October 2014, an Industrial Inf...

Synergy Resources Announces $125 Million Purchase Agreement for Wattenberg Field Assets and $230 Million in Committed Financing, Company to Host Conference Call Tomorrow, October 31st

Synergy Resources Announces $125 Million Purchase Agreement for Wattenberg Field Assets...

AXT, Inc. Announces $5 Million Stock Repurchase Program

AXT, Inc. Announces $5 Million Stock Repurchase Program

SAExploration Announces Third Quarter 2014 Earnings Release and Conference Call Schedule

SAExploration Announces Third Quarter 2014 Earnings Release and Conference Call Schedule

Power Engineering

Article Archives for Power Engineering Magazine

Continuing Education

Professional Development Hours

To access a course listing associated to a specific topic listed below, click on the topic of choice from the list below.

Latest Energy Jobs

View more Job Listings >>


Power Engineering Newscasts

EPA chief: carbon caps will boost economy
Australia, Russia enter nuclear power agreement with Argentina
Largest battery energy storage in North America now operational
EPA chief: carbon caps will boost economy Largest battery energy storage in North America now operational Australia, Russia enter nuclear power agreement with Argentina Texas’ Panda Temple combined cycle plant up and running
Siemens agrees to acquire Dresser-Rand
Safety concrete poured at UAE nuclear reactor power project
Foster Wheeler to upgrade natural gas-fired power plant’s emission controls
GE, TransCanada partner on natural gas turbine design
Energy storage global market to grow to $15.6B by 2024; DOE awards $2M to support taller wind turbine towers; Hinkley Point C nuclear project have financial incentives approved; N.J. company building waste-to-energy project in Ireland