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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
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FORM 8-K
Current Report
Pursuant to Section 13 or 15(d) of
The Securities Act of 1934
Date of Report (Date of earliest event reported): May 7, 1999
CALPINE CORPORATION
(A Delaware Corporation)
Commission File Number: 033-73160
I.R.S. Employer Identification No. 77-0212977
50 West San Fernando Street
San Jose, California 95113
Telephone: (408) 995-5115
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ITEM 5. OTHER EVENTS
On May 7, 1999, Calpine Corporation ("Calpine"), a Delaware corporation, through
a wholly-owned subsidiary, (collectively the "Company") entered into an
agreement with Pacific, Gas & Electric Company ("PG&E") to purchase 12 Sonoma
County and 2 Lake County power plants located at The Geysers, California
(collectively "The Power Plants"). As consideration for the purchase of The
Power Plants, the Company paid to PG&E $212.8 million in cash. The acquisition
was financed with a 24 year operating lease. The Company's geothermal steam
fields fuel The Power Plants, which have a combined capacity of approximately
700 megawatts of electricity. All of the electricity generated from The Power
Plants is sold into the California energy market, with the exception of an
agreement entered into on April 29, 1999 to sell to Commonwealth Energy
Corporation 75 megawatts of geothermal electricity in 1999, 100 megawatts in
2000, and 125 megawatts in 2001 and through June 2002.
ITEM 7. FINANCIAL STATEMENTS, PRO FORMA FINANCIAL INFORMATION AND EXHIBITS.
(c) Exhibits
Exhibit 99. Press Release
SIGNATURES
Pursuant to the requirements of the Securities and 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.
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Charles B. Clark, Jr.
Vice President, Corporate Controller
and Chief Accounting Officer
May 21, 1999
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Exhibit 99.
NEWS RELEASE Contact: Calpine (408) 995-5115
Public Relations Katherine Potter ext. 1168
Investor Relations Rick Barazza Ext. 1125
CALPINE COMPLETES ACQUISITION OF PACIFIC GAS AND ELECTRIC COMPANY'S 14
GEOTHERMAL POWER PLANTS AT THE GEYSERS IN NORTHERN CALIFORNIA
Calpine is Now the Nation's Largest Geothermal Power Producer
SAN JOSE, CALIF. (May 10, 1999)-Calpine Corporation [NYSE:CPN] today announced
it has completed the acquisition of Pacific Gas and Electric Company's (PG&E) 14
geothermal power plants at The Geysers in northern California, with a combined
capacity of approximately 700 megawatts of electricity, for $212.8 million. The
acquisition was financed with a 24-year operating lease. With the PG&E
acquisition in place, Calpine now owns interests in and operates 18 geothermal
power plants that generate more than 800 megawatts of electricity-making Calpine
the nation's largest geothermal and green power producer.
"This acquisition marks a historic milestone for The Geysers, where for the
first time, the steam field and power plant operations are being integrated into
one efficient, unified system," said Ron Walter, senior vice president of
Calpine. "This acquisition enables us to maximize this valuable renewable
natural resource, lower production costs and extend the life of The Geysers."
Calpine, a national independent power producer and leading green power provider,
announced last March it had completed the acquisition of Unocal Corporation's
14,000-acre Geysers geothermal steam fields for $101 million. With the Unocal
and PG&E acquisitions in place, Calpine is marketing electricity from its
Geysers portfolio into California's newly deregulated power market. Geothermal
power is an ideal energy product-it's one of the most reliable renewable energy
resources available, it's competitively priced, and it's environmentally
friendly. In April, Tustin-based Commonwealth Energy Corporation agreed to
purchase 75 megawatts of electricity from Calpine in 1999, increasing to 100
megawatts in 2000 and 125 megawatts through June 2002. This contract will be
fulfilled by green power purchased from these plants.
The Geysers, located about 90 miles northeast of San Francisco in Sonoma and
Lake counties, is the world's largest producing geothermal resource, with more
than 1,000 megawatts in production. It has been in operation for 39 years, and
Calpine has been active there since 1987. The company's geothermal staff has
more than 20 years of power plant and resource experience at The Geysers.
Based in San Jose, Calif., Calpine Corporation is a leading independent power
company dedicated to providing customers with clean, reliable and competitively
priced electricity. Calpine currently has 7,200 megawatts of capacity in
operation, under construction or in announced development in 11 states-enough
energy to power more than seven million households. The company was founded in
1984 and is publicly traded on the New York Stock Exchange under the symbol CPN.
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