UPDATE 1-Calpine Q3 beats Street; raises FY EBITDA outlook

* Q3 adj shr $0.40 vs est $0.33

* Oper rev down 42 pct

* Sees FY09 EBITDA $1.71 bln-$1.74 bln * Says entered power supply deal with PG&E

Oct 30 (Reuters) - Power company Calpine Corp (CPN.N) reported a third-quarter profit that beat estimates, helped by increased capacity factor and lower expenses.

For the quarter, the company's net income was $238 million, or 49 cents a share, compared to net income of $136 million, or 28 cents a share, a year earlier.

Excluding items, net income was 40 cents a share, compared with estimates of 33 cents a share, according to Thomson Reuters I/B/E/S.

Operating revenues fell 42 percent to $1.84 billion.

"Operationally, we improved availability across the fleet, and our capacity factor was up significantly during the quarter," Chief Executive Jack Fusco said in a statement.

The company raised its 2009 earnings before income tax, depreciation and amortization (EBITDA) outlook to $1.71 billion to about $1.74 billion, from $1.67 billion to $1.72 billion.

"For 2010, we project adjusted EBITDA of $1.5 billion to $1.6 billion, and adjusted free cash flow of $400 million to $500 million," the company said.

Separately, Calpine said it had entered into several power supply contracts with PG&E Corp (PCG.N) unit Pacific Gas and Electric Company. [ID:nWNAB7435]

Shares of Calpine closed at $10.82 Thursday on the New York Stock Exchange.

For the alerts, please double click [ID:nWNAB7455] (Reporting by Arup Roychoudhury in Bangalore; Editing by Maju Samuel)