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

Sponsored by FLSmidth

Related Articles

Power Engineering, Renewable Energy World announce Projects of the Year!

Editors from Renewable Energy World and Power Engineering reviewed each nominee and selected the four winners based on the technology that was employed as well as the projects’ impact on the industry at large and on the communities in which they were installed.

Calpine acquires Fore River Energy Center for $530M from Exelon

Calpine Corp. (NYSE: CPN) has completed the acquisition of the 809-MW Fore River Energy Center, a natural gas-fired, combined-cycle power plant located in North Weymouth, Massachusetts.

Follow Power Engineering on Twitter
Latest News

NRC staff official delegated to approve Watts Bar 2 operating license

Members of the Nuclear Regulatory Commission (NRC) have voted to delegate authority to the di...

Duke Energy receives approval to build 5MW solar power plant in Orlando

Duke Energy Florida (NYSE: DUK) received approval to build, own and operate a 5-MW solar faci...

SunEdison: Utah's largest solar facility now operational

SunEdison (NYSE: SUNE) announced the completion of the 3.8 MW South Milford solar facility in...

Texas groups petition feds over alleged coal exemptions

Environmental groups in Texas want to overturn a state action they say exempted large coal-fi...

Westar plans to buy wind power from new plant

TOPEKA, Kan. (AP) - Westar Energy says it plans to buy energy from a new wind farm to be buil...

Terrestrial Energy to advance molten salt reactor design

Terrestrial Energy Inc. is teaming with the Dalton Nuclear Institute at the University of Man...

Austria will sue over nuclear power subsidies

Austria said it will sue to block any subsidized nuclear power plants in Europe in an attempt...

GE to supply energy storage system in Ontario

Convergent Energy + Power will use a GE (NYSE: GE) 7-MWh battery energy storage system for th...

Power Engineering Current Issue

Volume 118, Issue 3
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.

Archived Articles

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

Power Industry Wire News

White Paper Establishes California's National Leadership in E85 Fuel Market

White Paper Establishes California's National Leadership in E85 Fuel Market

Ready for Summer Heat

Ready for Summer Heat

Blue Earth Announces Formation of E2B Growth, Inc. as a YieldCo Vehicle

Blue Earth Announces Formation of E2B Growth, Inc. as a YieldCo Vehicle

Ardagh Group, Glass - North America Awarded Six ENERGY STAR(R) Plant Certifications

Ardagh Group, Glass - North America Awarded Six ENERGY STAR(R) Plant Certifications

Pacific Energy Development Confirms Talks to Sell Rare Earth Interest

Pacific Energy Development Confirms Talks to Sell Rare Earth Interest

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 >>