SAN JOSE, Calif., Jun 29, 2000 (BUSINESS WIRE) -- 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.
CONTACT: Calpine
Katherine Potter, 408/995-5115 X1168 (PR)
Rick Barraza, 408/995-5115 X1125 (IR) |
