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(SAN JOSE, CALIF.) /PR Newswire – First Call/ Mar. 16, 2004 – Calpine Corporation [NYSE: CPN] today announced that it has entered into a 20-year purchased power agreement to provide 365 megawatts of electric power to Xcel Energy [NYSE: XEL] to help meet growing energy needs in the Upper Midwest.
The agreement, which is subject to approval from the Minnesota Public Utilities Commission, was awarded to Calpine following a power supply bidding process initiated by Xcel Energy in late 2001. Under the contract, Calpine will build, own and operate a new electric power plant to be located in Mankato, Minnesota.
“Our new agreement builds on the success we have had helping Xcel Energy meet its energy needs in Colorado, and continues Calpine’s strategy of placing the output of our generating assets under long-term contract,” said Calpine vice president Jim Shield. “We realize Xcel Energy chose Calpine from among a range of competing alternatives and we appreciate their continued confidence in our ability to be a low-cost and reliable provider of electric power products and services.”
In Colorado, Calpine currently supplies 300 megawatts to Xcel Energy from the Blue Spruce Energy Center and will supply 600 megawatts from the Rocky Mountain Energy Center. Both contracts are for terms of ten years.
Said David Eves, Xcel Energy’s vice president for resource planning and acquisition, “Calpine’s proposed plant is a good fit with other projects in the generation portfolio that resulted from Xcel Energy’s solicitation of proposals to meet the growing energy needs of our 1.5 million electricity customers in Minnesota and neighboring states.”
The Minnesota contract includes a requirement for 280 megawatts of intermediate power plus an additional 85 megawatts of peaking capability, for service beginning in 2006. The new 365-megawatt Mankato Power Plant will include a combined-cycle design with integrated peaking capability, ensuring that it will be a cost-effective, flexible and reliable supply resource for Xcel Energy and its customers throughout the 20-year term of the agreement. Calpine expects to utilize project financing for the majority of the capital costs. Most of Calpine’s equity in the project will be through the use of a natural gas combustion turbine and steam turbine from its existing inventory.
About Xcel Energy
Xcel Energy is a major U.S. electricity and natural gas company, with regulated operations in 11 Western and Midwestern states. Xcel Energy provides a comprehensive portfolio of energy-related products and services to 3.3 million electricity customers and 1.8 million natural gas customers through its regulated operating companies. In terms of customers, it is the fourth-largest combination natural gas and electricity company in the nation. Company headquarters are located in Minneapolis. More information is available at www.xcelenergy.com.
Calpine Corporation, celebrating its 20th year in power in 2004, is a leading North American power company dedicated to providing electric power to wholesale and industrial customers from clean, efficient, natural gas-fired and geothermal power facilities. 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, and construction will begin this year on the company’s first project in Mexico. 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 was founded in 1984 and is publicly traded on the New York Stock Exchange under the symbol CPN. For more information about Calpine, visit www.calpine.com.