UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): May 26, 2004
CALPINE CORPORATION
(A Delaware Corporation)
Commission File Number: 001-12079
I.R.S. Employer Identification No. 77-0212977
50 West San Fernando Street
San Jose, California 95113
Telephone: (408) 995-5115
ITEM 5. OTHER EVENTS
NEWS RELEASE CONTACTS: 408-995-5115
Media Relations: Katherine Potter, Ext. 1168
Investor Relations: Rick Barraza, Ext. 1125
Calpine Raises $101 Million Through Sale of Power Contract
(SAN JOSE, Calif.) /PR Newswire - First Call/ May 26, 2004 - As part of its
program to enhance liquidity and reduce debt, Calpine Corporation [NYSE:CPN] has
sold its power contract related to the 118-megawatt Parlin and 58-megawatt
Newark Power Plants in New Jersey. With this sale Calpine raised $101 million in
cash, after transaction costs and a payment to retire approximately $79 million
of non-recourse project debt. In addition, the company successfully lowered the
cost of power by more than 10% for its customer and ratepayers while improving
its regional operating flexibility to better serve the Pennsylvania, New Jersey,
Maryland (PJM) market.
"Calpine and a valued customer benefit from this transaction," stated Bob
Kelly, Calpine chief financial officer. "The customer continues to receive
reliable power, at more competitive rates. Calpine enhances its liquidity,
reduces debt and strengthens its competitive position in the PJM market."
As part of this transaction, Calpine terminated its previous
unit-contingent power contracts. This will enable the company to operate its
Newark and Parlin Power Plants to more effectively respond to market conditions.
Calpine since entered into a new contract to supply the customer with market
power, and has subsequently sold this contract to Morgan Stanley Capital Group,
Inc. Together with Calpine's 584-megawatt Onetelanuee Energy Center in
Pennsylvania, the PJM market is now being served the through the company's
integrated system of power plants.
About Calpine
Calpine Corporation, celebrating its 20th year in power, is a leading North
American power company dedicated to providing electric power to customers from
clean, efficient, natural gas-fired and geothermal power plants. The company
generates power at plants it owns or leases in 21 states in the United States,
three provinces in Canada and in the United Kingdom. Calpine is also the world's
largest producer of renewable geothermal energy, and owns or controls
approximately one trillion cubic feet equivalent of proved natural gas reserves
in the United States and Canada. The company is listed on the S&P 500 and was
named FORTUNE's 2004 Most Admired Energy Company. The company was founded in
1984 and is publicly traded on the New York Stock Exchange under the symbol CPN.
For more information, visit 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) the timing and extent of deregulation of energy markets and the
rules and regulations adopted on a transitional basis with respect thereto; (ii)
the timing and extent of changes in commodity prices for energy, particularly
natural gas and electricity; (iii) unscheduled outages of operating plants; (iv)
a competitor's development of lower cost generating gas-fired power plants; (v)
risks associated with marketing and selling power from power plants in the
newly-competitive energy market; (vi) other risks identified from time-to-time
in the Company's reports and registration statements filed with the SEC,
including the risk factors identified in its Annual Report on Form 10-K for the
year ended December 31, 2003 and in its Quarterly Report on Form 10-Q for the
quarter ended March 31, 2004, which can also be found on the Company's website
at www.calpine.com. All information set forth in this news release is as of
today's date, and the Company undertakes no duty to update this information.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
CALPINE CORPORATION
By: /s/ Charles B. Clark, Jr.
-------------------------
Charles B. Clark, Jr.
Senior Vice President and Controller
Chief Accounting Officer
Date: May 27, 2004