Calpine completes $140m plant refinancing

11 November 2003 – Calpine Corporation completed a $140m, 15-year term loan for its 300 MW Blue Spruce Energy Centre located in Aurora, Colo. The new financing replaces a construction loan, which the company entered into in August 2002.

Calpine sells the full output of the plant to Public Service Co. of Colorado (Public Service) under a ten-year tolling agreement. Beal Bank, Dallas, Texas, provided the term loan.

“This demonstrates Calpine’s continued successful implementation of its financing strategy, whereby commercial, bank-provided construction facilities are refinanced with attractive, long-term financing in the capital markets,” said Brian Harenza, Calpine vice president, finance.

The Blue Spruce Energy Centre entered operations in April 2003. Under the ten-year tolling agreement, Public Service has dispatch rights for all of the capacity and energy produced by the power plant. It also manages the purchase and delivery of natural gas used to fuel the facility.

The power plant is located in an industrial area east of Denver in Aurora, and interconnects with Public Service’s transmission lines, with access to nearby gas pipelines serving the region. The facility’s strategic location enables it to directly support Public Service’s grid when power is needed the most.