Calpine Signs 100-Megawatt Nevada Power Sales Agreement
Monday January 27, 2:52 pm ET
SAN JOSE, Calif., Jan. 27 -- Calpine Corporation (NYSE: CPN - News), the nation's leading independent power company, announced today that it has entered into a three-year power purchase agreement with Nevada Power Company (Nevada Power), a subsidiary of Sierra Pacific Resources (NYSE: SRP - News). The arrangement calls for the delivery of 100 megawatts of on-peak and 50 megawatts of off-peak power. Calpine expects the contract to generate annual revenue of approximately $43 million.
The agreement has been executed with Nevada Power and is pending final approval by the Public Utilities Commission of Nevada (PUCN). The contract is scheduled for PUCN review this March and power deliveries are expected to begin June 1, 2003.
"Calpine is pleased to be expanding our valued business relationship with Nevada Power through this contract," said Calpine's Curt Hildebrand, Vice President, Sales & Marketing. "We view Nevada as an important power market for Calpine, and this agreement further highlights the value of our South Point Energy Center. Its location and superior efficiency provide Calpine a distinct advantage in securing contracts to serve one of the region's fastest growing power markets."
Energy delivered under the Nevada Power contract will primarily originate from Calpine's South Point Energy Center located at the Fort Mohave Indian Reservation near Bullhead City, Ariz. at the California/Arizona border. Online since June 2001, South Point represents the first merchant power plant to begin operation in Arizona and the first facility of its kind to be developed on Native American tribal lands. The facility was built specifically to serve the Tri-state wholesale power market comprised of Western Arizona, Southern Nevada and Southern California.
Comparable to the majority of Calpine's energy centers, South Point uses a combined-cycle design that enables it to generate electricity 40 percent more efficiently than traditional natural gas-fired facilities, and the project incorporates the best available emissions control technology resulting in up to 90 percent fewer emissions compared to older-technology power plants. |
