Calpine Corporation (ticker: CPN, exchange: New York Stock Exchange)
News Release - 1/11/01
Western Hub Properties LLC and Calpine Announce Storage Lease Agreement
SAN JOSE, Calif., Jan. 11 /PRNewswire/ -- Western Hub Properties LLC (WHP), an independent developer of high-deliverability market area natural gas storage facilities, and Calpine Corporation (NYSE: CPN), the leading U.S. independent power plant developer, today announced that WHP's wholly owned subsidiary, Lodi Gas Storage, LLC, has entered into a long-term firm agreement to supply Calpine with storage services at WHP's Lodi Gas Storage facility near Lodi, Calif. The storage arrangement can provide up to 4 billion cubic feet (bcf) of working gas inventory and daily deliverability equal to approximately 20 percent of Calpine's western region peak day gas requirements in 2002.
The Lodi Gas Storage Project, located approximately 50 miles east of San Francisco, will be California's first high-deliverability, multi-turn storage facility. The facility is slated to begin construction in February of 2001, and will be in operation early in the fourth quarter of 2001. LGS will provide the Northern California natural gas market much needed flexibility and supply dependability with up to 12 bcf of inventory capacity and almost 500,000 million British thermal units per day of deliverability.
"Lodi's high-deliverability, high-injection capabilities will provide much needed natural gas balancing and peaking services in the heart of Northern California's load. These services will be especially critical to meeting the needs of the new gas-fired power generation being developed in the state," says Thomas R. Dill, president and CEO of Western Hub Properties. "Calpine continues to demonstrate its foresight by acquiring the flexibility which will enable them to continue to be a low cost producer of dependable electric power."
Calpine Vice President-Fuels Brad Barnds, commented, "Calpine is developing a new fleet of clean highly reliable gas-fired generation facilities to help alleviate California's energy crisis. These new energy facilities will bring approximately 3,000 megawatts of much needed electricity to California's energy constrained market. And they will depend on highly reliable and flexible sources of natural gas. Lodi Gas Storage will provide Calpine with these value-added services, enabling Calpine to continue to provide affordable and much-needed generation to California."
Based in Houston, Texas, WHP is the fastest growing independent developer and operator of market area high deliverability natural gas storage facilities and is in various stages of development on the CenTex Market near San Antonio, Texas, and the Wheeler Ridge Project in Southern California. Founded in 1998, WHP is owned by an energy partnership managed by Haddington Ventures, LLC of Houston, Texas. The partnership owns a portfolio of mid-stream energy related companies. The partnership includes affiliates of Chase Capital Partners, Prudential Capital Group, Travelers Companies, Vectren Enterprises and UniSource. For more information regarding LGS or WHP contact Kevin O'Toole, 281-679-3591, firstname.lastname@example.org.
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 world's largest producer of renewable geothermal energy. Calpine has launched the largest power development program in North America. To date, the company has approximately 28,100 megawatts of base load capacity and 5,400 megawatts of peaking capacity in operation, under construction and in announced development in 27 states and 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) the risks associated with marketing and selling power from power plants in the newly competitive energy market, or (vii) the risks associated with natural gas storage facilities. 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. SOURCE Calpine Corporation