Securities and Exchange Commission
Washington, DC 20549
Form 8-K
Current Report
Pursuant to Section 13 to 15(d) of the
Securities Exchange Act 1934
Date of Report November 15, 1994
(Date of earliest event reported)
California Energy Company, Inc.
(Exact name of registrant as specified in its charter)
Delaware 1-9874 94-2213782
(State of other (Commission File (IRS Employer
jurisdiction of Number) Identification No.)
incorporation)
10831 Old Mill Road Omaha, Nebraska 68154
(Address of principal executive offices) Zip Code
Registrant's Telephone Number, including area code: (402)330-8900
N/A
(Former name or former address, if changed since last report)
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ITEM 5. Other Events
Execution of Philippine Casecnan Project Agreement
On November 15, 1994, the Registrant announced that
Registrant and the Philippine National Irrigation Administration
("NIA") have signed a Project Agreement for a combined
hydroelectric and irrigation Project ("Project") in the Casecnan
area of Luzon. The registrant will own a 70% equity interest in
a joint venture that will build, own, operate and transfer. A
copy of the press release issued by the Registrant is set forth
as Exhibit 1 hereto and is incorporated herein by reference.
Award at the Dieng Geothermal Field, Central Java, Indonesia
On November 16, 1994, the Registrant announced that its
subsidiary, Himpurna California Energy, Ltd., has executed an
undertaking to sign a fully negotiated Joint Operation Contract
for the development of the geothermal steam field with Pertamina
(the Indonesian national oil and natural gas company) and a fully
negotiated Energy Sales Contract with Pertamina and PLN (the
Indonesian national electric utility) to build, own and operate a
geothermal power facility at the Dieng goethermal field, located
in Central Java. A copy of the press release issued by the
Registrant is set forth as Exhibit 2 hereto and is incorporated
herein by reference.
ITEM 7. Financial Statements and Exhibits
Exhibit 1 - Press Release dated November 15, 1994.
Exhibit 2 - Press Release dated November 16, 1994.
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SIGNATURE
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.
California Energy Company, Inc.
By: /s/Douglas L. Anderson
Douglas L. Anderson
Assistant Secretary
Dated: November 22, 1994
FOR IMMEDIATE RELEASE
David L. Sokol - Chairman and Chief Executive Officer (402) 330-8900
Dale R. Schuster - Vice President (402) 330-8900
Mark H. Harnett - MacKenzie Partners (212) 929-5877
CALIFORNIA ENERGY SIGNS HISTORIC PROJECT AGREEMENT FOR THE PHILIPPINE
PANTABANGAN MULTIPURPOSE ENHANCEMENT PROJECT
OMAHA, NEBRASKA, NOVEMBER 15, 1994 - California Energy Company, Inc.
("CE") (NYSE, PSE, LSE: CE) announced today that CE and the Philippine National
Irrigation Administration ("NIA") have signed a historic Project Agreement for
the Pantabangan Multipurpose Enhancement Project ("Project"), also known and
previously announced as the Casecnan Multipurpose Project, in the Casecnan area
of Luzon.
The Project, a U.S. $320 million combined irrigation and hydroelectric
power generation project, will deliver excess water from the Casecnan and Denip
(Cagayan) watershed in Northern Luzon to the Pampanga watershed at the
Pantabangan Reservoir for subsequent irrigation use by the NIA in the
agriculturally critical Central Luzon Valley. Additionally, the Project will
provide 140 MW of new, installed hydroelectric capacity to the important Luzon
electrical grid.
Unlike other projects proposed for the Casecnan area, CE's Casecnan
Project involves no high dams, no permanent impoundment of water and no
flooding of existing villages or houses.
President Fidel Ramos stated publicly he considers the Project as part of
government support projects to "cushion the initial effects on Philippine
agriculture" of the General Agreement on Tariffs and Trade ("GATT"), which the
Philippine Senate is expected to ratify. The Project is also expected to
promote domestic growth in the form of new jobs and infrastructure development.
CE submitted its proposal for the Project jointly with San Lorenzo Ruiz
Builders & Developers Group, Inc., a Philippine based land and real estate
development company, and The LaPrairie Group, a full service contractor based
in Canada. California Energy will have a 70% equity interest in and will
manage the joint venture. CE expects to use internally generated funds for its
equity investment and non-recourse debt financing to finance the construction
costs.
The Project Agreement is structured as a Build, Operate, Transfer
Agreement ("BOT") under which NIA will supply the water for the Project. CE
and its venture partners will build the facility, own and operate it for a 20-
year cooperation period and will be paid on a "take or pay" basis for the water
and electricity. Following the repayment of the non-recourse project debt and
recovery of invested capital during the cooperation period, the plant will be
transferred to NIA at no cost. This is NIA's first BOT agreement.
Construction for the Project should begin in mid-1995 with Project completion
scheduled for the end of 1998.
David Sokol, Chairman and Chief Executive Officer of California Energy,
stated, "California Energy Company and our venture partners are truly honored
to be key participants in the Philippine Government's long-term program of
economic and infrastructure development. The Project is our third major
Philippine project in 1994 with the total investment approaching U.S. $1
billion in the Philippines and representing over U.S. $700 million in United
States exports of goods and services."
California Energy Company, Inc. is a leading international developer,
owner and operator of geothermal and other environmentally responsible power
generation facilities. Its six existing facilities currently produce in excess
of 325 MW of power with an additional 300 MW under construction in the Republic
of the Philippines.
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FOR IMMEDIATE RELEASE
David L. Sokol - Chairman and Chief Executive Officer (402) 330-8900
Dale R. Schuster - Vice President (402) 330-8900
Mark H. Harnett - MacKenzie Partners (212) 929-5877
CALIFORNIA ENERGY AWARDED INDONESIA GEOTHERMAL CONTRACTS
JAKARTA, INDONESIA, November 16, 1994 - California Energy Company, Inc.
(NYSE, PSE, LSE: CE) ("CECI") today announced that its subsidiary, Himpurna
California Energy, Ltd., has been awarded fully negotiated contracts to
build, own and operate a geothermal power facility at the Dieng geothermal
field, located in Central Java (the "Dieng Project"). CECI Chairman David
Sokol, also Chairman of the Board of Directors of Himpurna California Energy,
Ltd., executed an undertaking to sign a Joint Operation Contract for the
development of the geothermal steam field with Pertamina (the Indonesian
national oil and natural gas company) and a "take or pay" Energy Sales
Contract with both Pertamina and PLN (the Indonesian national electric
utility). U.S. Commerce Secretary Ronald H. Brown and Minister of Mines and
Energy L.B. Sudjana witnessed the signings at the Jakarta Convention Center.
The Dieng Project agreements are subject to a mandatory seven-day legal
review by the Ministry of Mines and Energy.
The Dieng geothermal field has 27 drilled wells and is one of the few
explored and proven geothermal reservoirs in Indonesia. The Dieng Project is
structured as a 30-year BOOT (build-own-operate-transfer) project under which
CECI and its Indonesian partner, P.T. Himpurna Enersindo Abadi, will
construct a series of power production units up to a maximum total aggregate
output of 400 net megawatts (MW). Himpurna California Energy, Ltd. will
complete its current well testing program shortly and plans to commence
construction of the initial Dieng plant in early 1995. Construction of
further units will be scheduled in accordance with the exploration and
production drilling of the well field. The first phase development is
planned to total 220 MW. The initial unit is expected to reach commercial
operation in mid-1997. The cost of the full project is expected to total
U.S. $ 1 billion and the value of U.S. goods and services to be supplied is
estimated to be U.S. $ 600 million.
David Sokol stated, "We are very pleased to have these contracts for our
first geothermal project in Indonesia, and we look forward to working closely
with the Indonesian government on the construction of the power units. The
Dieng Project will help meet Indonesia's increasing demand for electricity
and will provide an environmentally benign and renewable source of power
generation. This geothermal power project is a plus for both the United
States and Indonesia. It will generate significant levels of U.S. exports,
technology transfers and jobs. It will also benefit the Indonesian economy
by reducing oil imports, thereby providing foreign exchange savings, and by
helping provide the foundation for continued industrial expansion."
This is the fourth energy project CECI has been awarded in Asia within
the past 18 months. The company has successfully financed and begun
construction on more than U.S. $500 million in geothermal power projects in
the Philippines, totaling 300 MW and utilizing over U.S. $400 million in U.S.
goods and services. In addition, CECI recently signed contracts for a 140 MW
combined hydroelectric and irrigation project on the island of Luzon in the
Philippines.
California Energy Company is a leading international developer, owner
and operator of geothermal and other environmentally responsible power
generation facilities. Its six existing facilities currently produce in
excess of 325 MW of power, with an additional 300 MW under construction and
over 550 MW under contract.
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