To: deepenergyfella who wrote (1 ) 11/23/2002 9:40:15 PM From: John Morrison Read Replies (2) | Respond to My DD finds the following positives in Calpine.1. Environment-Friendly, Clean Energy -- involved in development, acquisition, ownership, and operation of clean natural gas fired plants. No other company is dedicated to providing clean energy. Calpine has no coal, no nukes, no junk .2. Capacity Increase -- tripled 3. Finances stable -- refinanced pressing debt early in 2002. Cash Cushion of $1.2 to $1.4 billion. Calpine will not access equity markets in 2003. Has sold some non-strategic assets and may sell others.4. Highly Efficient -- new gas-fired plants at least 35% more efficient than older plants. Some of competition is closing old plants that cannot compete.5. Low Maintenance -- new plants are subject to very little maintenance.6. Gas Reserves -- has 1.3 trillion cubic feet equivalent of proved reserves on hand as of 31 December 2001. Also has a broad range of other fuel sourcing options.7. Undervalued -- ranked number 2 on list of most undervalued stocks in electric utility sector.8. Valuable Hard Assets -- value of assets which are state-of-the-art, appreciating, low-maintenance, income-producing power plants exceeds liabilities by several billion dollars. 17558 megawatts are in operation today.9. Long Term Contracts -- much of Calpine's capacity is under long term contract ensuring future revenues and capacity utilization. For example, 85% of power provided to California is under long term contracts. Summary: $6.6 billion above market value, 125 contracts, over 80 customers, 7-year weighted average life. Percent sold in 2003 = 51%.10. Ethical Practices -- fair trading practices kept company out of this negative spotlight. No subpoenas Settled with California early in 2002 to clear the slate on ALL legal issues or differences of opinion. Calpine was first IPP to sign SEC certification and first IPP to announce the expensing of options.
