Profile: Calpine Corp (CPN)
22 May 2013
Calpine Corporation (Calpine) is an independent wholesale power producer in the United States. The Company owns and operates primarily natural gas-fired and geothermal power plants in North America and has presence in wholesale power markets in California, Texas and the Mid-Atlantic region of the United States. The Company has invested in clean power generation. It is developing, constructing, owning and operating an environmentally responsible portfolio of power plants. Its portfolio is primarily consist of two types of power generation technologies: natural gas-fired combustion turbines, which are combined-cycle plants, and renewable geothermal conventional steam turbines. The Company is a owner and operator of industrial gas turbines, as well as cogeneration power plants. The Company sells wholesale power, steam, capacity, renewable energy credits and ancillary services to its customers, including utilities, independent electric system operators, industrial and agricultural companies, retail power providers, municipalities and power marketers. It purchases natural gas and fuel oil as fuel for its power plants and engage in related natural gas transportation and storage transactions. The Company also purchases electric transmission rights to deliver power to its customers. In November 2012, the Company completed the acquisition from Bosque Power Company, LLC, of a natural gas-fired, combined-cycle power plant located in Bosque County, Texas. In December 2012, the Company sold the Broad River Energy Center to Broad River Power LLC.
As of December 31, 2011, the Company owned 93 power plants, including two under construction, with an aggregate generation capacity of approximately 28,155 megawatts and 584 megawatts under construction. Its generation capacity includes 77 natural gas-fired power plants, 15 geothermal plants and one photovoltaic solar plant. The Company is a consumer of natural gas in North America. The Company sells a substantial portion of its power and other products under power purchase agreements (PPAs) with a duration greater than one year. The contracted sale of power, steam and capacity from its cogeneration power plants, combustion turbine power plants and geothermal power plants, as well as the sale of renewable energy credits (RECs), from its geothermal and solar power plants, provide a stable source of revenue. The Company produces power for sale to utilities, municipalities, retail power providers, independent electric system operators, large end-use industrial or agricultural customers or power marketers. Its cogeneration power plants produce steam for sale to customers for use in industrial or heating, ventilation and air conditioning operations. The Company provides capacity for sale to retail power providers. It provides ancillary service products to wholesale power markets. It sells RECs from its Geysers Assets in northern California, as well as from its small solar power plant in New Jersey.
The Company’s natural gas-fired power plants primarily utilize two types of design: 3,515 megawatts of simple-cycle combustion turbines and 23,043 megawatts of combined-cycle combustion turbines and a small portion from natural gas-fired steam turbines. Its Geysers Assets are a 725 megawatts fleet of 15 operating power plants in northern California. It leases the geothermal steam fields from which it extracts steam for its Geysers Assets. The Company has leasehold mineral interests in 110 leases comprising approximately 29,019 acres of federal, state and private geothermal resource lands in The Geysers region of northern California. Its leases cover one contiguous area of property that comprises approximately 45 square miles in the northwest corner of Sonoma County and southeast corner of Lake County. Across the fleet, it also has a variety of technologies, including approximately 868 megawatts of capacity from its power plants acquired in the Conectiv Acquisition which have conventional steam turbine technology. The Company also has approximately four megawatts of capacity from solar power generation technology at its Vineland Solar Energy Center in New Jersey.
The Company has 24 natural gas-fired power plants, including two under construction, with the capacity to generate a total of 6,194 megawatts in the Western Electricity Coordinating Council (WECC) North American Electric Reliability Council (NERC) region, which extends from the Rocky Mountains westward. In addition, it owns and operate 15 geothermal power plants located in northern California capable of producing a total of 725 megawatts. The majority of these power plants are located in California, in the California Independent System Operator (CAISO) region; the Company also owns a power plant in Arizona and one in Oregon. The Company has 12 natural gas-fired power plants in the TRE NERC region with the capacity to generate a total of 7,239 megawatts, all of which are physically located in the ERCOT market. It has a total of 31 power plants with 7,914 megawatts of peaking capacity located in the RFC, Northeast Power Coordinating Council (NPCC) and Midwest Reliability Organization (MRO) NERC regions. The Company has 19 operating power plants with the capacity to generate a total of 4,491 megawatts in Eastern PJM. In addition, it has one operating power plant, with the capacity to generate 503 megawatts, located in Western PJM. The company has a total of eight natural gas-fired power plants with the capacity to generate a total of 1,439 megawatts in the NPCC NERC region. Five of these power plants are located in New York.
The Company has 50% ownership interests in two Canadian power plants, with the total capacity to generate 1,088 MW (544 megawatts net attributable to Calpine), located in the NPCC NERC region in Ontario, Canada. The Whitby cogeneration facility is a 50 megawatts facility located in Whitby, Ontario and the Greenfield Energy Centre is a 1,038 megawatts facility located in Courtright, Ontario. The Company has three natural gas-fired power plants with the capacity to generate a total of 1,481 megawatts operating within the MRO NERC region. The Company has one operating natural gas-fired power plant with the capacity to generate 1,134 megawatts located in the Southwest Power Pool (SPP) NERC region. SPP is an RTO approved by FERC that provides independent administration of the electric power grid. SPP manages an energy-only location based real-time wholesale energy market. The Company has 10 natural gas-fired power plants with the capacity to generate a total of 4,949 megawatts operating within the Southeastern Electric Reliability Council (SERC) and the Florida Reliability Coordinating Council (FRCC) NERC regions.
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