Business Editors
SAN JOSE, Calif.--(BUSINESS WIRE)--June 29, 2000--Calpine
Corporation (NYSE:CPN), the nation's leading independent power
company, today announced that it has secured the rights to develop,
build, own and operate a 600-megawatt natural gas-fired electricity
generating facility near the town of Thermal in Riverside County,
Calif. through a development agreement with Adair International Oil
and Gas, Inc. (OTC Bulletin Board: AIGI). The $275 million Teayawa
Energy Center will be sited on the Torres Martinez Desert Cahuilla
Indians' land through a long-term lease agreement between Calpine and
the Torres Martinez.
The proposed Teayawa Energy Center will produce enough electricity
to supply approximately 600,000 households, representing a significant
contribution towards meeting the reliability needs of the rapidly
growing Coachella Valley and Southern California. Construction of the
project may begin as soon as mid-2001, with commercial operation
beginning in late 2003.
As the power project is located on Native American land, the lead
permitting agency under the National Environmental Policy Act is the
federal Bureau of Indian Affairs (BIA). Additionally, BIA approval is
necessary to ensure that the Teayawa Energy Center appropriately meets
the cultural, environmental and economic considerations of the Torres
Martinez.
With the proposed power plant, the Torres Martinez are taking a
significant step to attract business to the reservation. According to
tribal Chairperson Mary Belardo, "The Torres Martinez people have been
looking for a long-term economic development alternative to casinos.
After investigating several options, we elected to pursue power
generation as we feel it best benefits the entire region while
bringing a much-needed, long-term source of revenue to our community.
Calpine is a company with a proven record of environmental and
community responsiveness, and as a leader in their field, Calpine
brings credibility to any project they undertake."
The Torres Martinez Desert Cahuilla Indians have inhabited the
Coachella Valley from time immemorial. Federally recognized, the Tribe
is headquartered at the town of Thermal. Total area of the Reservation
is 24,024 acres with a population of 600.
In making the announcement, Calpine Senior Vice President Jake
Rudisill stated, "The Teayawa Energy Center is an excellent
opportunity for Calpine. We are able to build a mutually beneficial
power project that will immediately contribute to the welfare of the
Torres Martinez and ensure that the region has access to a reliable
supply of clean, affordable electricity."
The Teayawa Energy Center will use two advanced technology 501F
combustion turbines, supplied by Siemens-Westinghouse, operated in
combined-cycle with a single steam turbine. The plant will be fueled
by clean natural gas in conjunction with an advanced emissions control
system.
As a result, the facility will be an environmentally responsible
source of power that will help address the growing electricity demand
throughout Southern California. The output from the Teayawa Energy
Center will be sold into California's competitive electric power
market, providing the opportunity for farmers, businesses, water
districts and other utility customers to benefit from a clean,
reliable source of electricity and potential cost savings.
Calpine will manage all aspects of project development for the
Teayawa Energy Center, including engineering and design, construction,
fuel supply, and power marketing. The project will interconnect with
an existing transmission line adjacent to the property.
Adair International is based in Houston, Texas. The company is
active in the areas of oil and gas drilling and production and
electric power generation both domestic and international. Adair is a
publicly traded company listed on the NASDAQ Bulletin Board exchange
under the symbol AIGI.OB. For more information about Adair, visit its
Website at www.aigionline.com.
Based in San Jose, Calif., Calpine Corporation is dedicated to
providing customers with reliable and competitively priced
electricity. Calpine is focused on clean, efficient combined-cycle,
natural gas-fired generation and is the nation's largest producer of
renewable geothermal energy. Calpine has launched the largest power
development program in the U.S. To date, the company has a combined
interest in approximately 27,900 megawatts of electric generation
capacity in operation, under construction and announced development in
25 states and Alberta, Canada. The company was founded in 1984 and is
publicly traded on the New York Stock Exchange under the symbol CPN.
For more information about Calpine, visit its website at
www.calpine.com.
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) cost estimates are
preliminary and actual cost may be higher than estimated, (iv) the
assurance that the Company will develop additional plants, (v) a
competitor's development of a lower-cost generating gas-fired power
plant, (vi) receipt of regulatory approvals or (vii) 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.
--30--ac/sf*
CONTACT: Calpine
Katherine Potter, 408/995-5115 X1168 (PR)
Rick Barraza, 408/995-5115 X1125 (IR)
KEYWORD: CALIFORNIA
INDUSTRY KEYWORD: ENERGY OIL/GAS
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