IPPs and Merchant Energy Co.s Message Board

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Strategies & Market Trends : IPPs and Merchant Energy Co.s

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To: NDBFREE who wrote (3045)	1/13/2004 2:08:51 PM
From: NDBFREE	Read Replies (1) of 3358

Only partially agree. Take a look at where Calpine built plants. They weren't all in California and Northeast. other problems I see for Calpine are: 1. believe they built a number of combined cycle plants where they entered into thermal sales contracts and power sales contracts for total output . Fine if they also have a LT contract for the needed NG at a price pegged in some way to the power sales contract. Not good if NG not pegged to price of power sales contract or not under LT contract. 2. believe they built a number of combined cycle plants where they entered into thermal sales contracts but were not able to sign a power sales contract. Not good if they subsidized the price of thermal energy but find themselves unable to operate the powerplant and thus have to fire up aux boilers (buring Ng or oil) to supply the steam they contracted to supply. could run off a couple of other senarios, but believe these 2 express my concern about CNP. I would need to know more, lots more, before I would invest in CPN. Just my opinion. I've been known to be wrong.

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