Calpine Corporation Announces Joint Venture With GenTex to Build State-of-the-Art 500 MW Natural Gas-Fired Power Plant
SAN JOSE, CALIF. (April 22) BUSINESS WIRE -April 22, 1999--
Lost Pines I to Provide Needed Capacity
for Growing Central Texas Power Market
Calpine Corporation (NYSE:CPN) today announced it has entered into an agreement with Austin, Texas-based GenTex Power Corporation -- the power generating affiliate of The Lower Colorado River Authority (LCRA) -- to build, own and operate a $225 million natural gas-fired power plant in Bastrop County, Texas.
The proposed facility, called Lost Pines I, will provide 500 megawatts of reliable, competitively priced energy to the growing central Texas wholesale power market. The Calpine/GenTex project represents the first private/public venture between a public power organization and an independent power producer in Texas.
Calpine, the largest independent power producer in Texas, currently owns and operates more than 1,100 megawatts of capacity in the state, with 1,500 megawatts of capacity in construction or under development. GenTex was formed in 1995 by the LCRA -- a conservation and reclamation district, which provides wholesale electric service to a 53-county service territory in central Texas.
GenTex Chief Executive Officer Mark Rose said, "Meeting the challenges of today's changing wholesale energy market demands innovative solutions. Calpine is an industry leader in the development of state-of-the-art power facilities. This innovative private/public venture will ensure that the public receives the highest quality product, at competitive rates."
Lost Pines I will be located 30 miles southeast of Austin, Texas in Bastrop County at the Lost Pines Power Park, the site of the Sim Gideon power plant. This location provides access to an existing power infrastructure. Construction of the facility is expected to begin in October 1999, with the plant entering operations in June 2001.
"Calpine is committed to developing efficient and environmentally responsible projects in the communities and energy markets we serve," said Diana Naylor, Calpine's vice president-central region. "We appreciate GenTex's confidence in our ability to develop a model energy center."
The new project will be developed through a 50/50 joint venture between Calpine and GenTex. Calpine will manage all phases of project development, utilizing its unique Calpine-Construct approach. This includes management of the development, design, engineering, and construction of the plant. GenTex and Calpine will jointly operate the plant. Upon commercial operation, GenTex will take half of the electrical output from Lost Pines I for sale to its customer base. Calpine will market the remaining energy to the deregulated wholesale power market through its Houston-based power marketing organization.
Lost Pines I will utilize the latest combined-cycle combustion turbine design and emission control technology to ensure maximum efficiency while safeguarding the environment. Siemens Westinghouse Power Corporation will supply two 501F-D combustion turbines.
Based in San Jose, Calif., Calpine Corporation is a leading independent power company dedicated to providing customers with reliable and competitively priced electricity. Calpine currently has 7,000 megawatts of capacity in operation, under construction or in announced development in 11 states -- enough energy to power more than seven million households. The company was founded in 1984 and is publicly traded on the New York Stock Exchange under the symbol CPN.
This news release discusses certain matters that may be considered "forward-looking" statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, including statements regarding the intent, belief or current expectations of Calpine Corporation ("the Company") and its management. Prospective investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve a number of risks and uncertainties that could materially affect actual results such as, but not limited to,(i) changes in government regulations and anticipated deregulation of the electric energy industry; (ii) commercial operations of new plants that may be delayed or prevented because of various development and construction risks, such as a failure to obtain financing and the necessary permits to operate or the failure of third-party contractors to perform their contractual obligations (iii) the assurance that the Company will develop additional plants, (iv) a competitor's development of a lower-cost generating gas-fired power plant or (v) the risks associated with marketing and selling power from power plants in the newly competitive energy market. Prospective investors are also referred to the other risks identified from time to time in the Company's reports and registration statements filed with the Securities and Exchange Commission.
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CONTACT: Calpine Corp.
408/995-5115
Media Relations: Katherine Potter, X1168
Investor Relations: Rick Barraza, X1125
KEYWORD: CALIFORNIA TEXAS
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