Calpine Provides Update on Wildfire Impact on The Geysers Geothermal Power Facilities
Over the weekend, a wildfire designated as the Valley Fire spread to
Calpine Corporation’s (NYSE: CPN) The Geysers geothermal power
facilities in Lake and Sonoma Counties, California, affecting five of
Calpine’s 14 power plants. All employees and contractors were safely
evacuated and accounted for. We understand from the California
Department of Forestry and Fire Protection (Cal Fire) that the fire is
moving away from other power plants at The Geysers but is only minimally
contained and could change direction. We continue to generate and
deliver renewable electricity to the grid for our customers from our
non-affected plants at The Geysers to the extent possible. We are
coordinating closely with Cal Fire in the event further evacuation is
needed from our operating plants, as employee safety is our top priority.
The fire inflicted substantial damage to the communities surrounding The
Geysers. As a longtime member and supporter of these communities, we are
heartbroken over the losses sustained by our employees, friends and
neighbors and our thoughts and prayers are with them. For our affected
employees, we are developing assistance programs to support our Geysers
family through these difficult times. We also are working with local
officials and community leaders to determine how best to provide
assistance and support to the communities impacted by this fire to help
them get back on their feet, with initial donations totaling $100,000 to
local charities, including the American Red Cross, for community relief
efforts. Finally, we would like to express our heartfelt thanks to the
first responders who are working hard to contain the fire.
As to our affected facilities, ancillary structures (specifically,
cooling towers, communication equipment and local power distribution
lines) have been severely damaged. There is no known damage to any of
the main power houses (including steam turbine and generator sets) at
those sites. The fire also damaged some third-party transmission lines
that transmit our power to the grid. Calpine’s insurance includes
coverage for wildfire risks at The Geysers. Based on preliminary
information, we expect such insurance will cover costs to repair or
replace our damaged facilities as well as our net revenue losses, after
applicable deductibles. We expect our delivery obligations under power
sales agreements to be excused without further obligation by reason of
force majeure until repairs are completed.
The Geysers is the largest geothermal complex in the world comprising
approximately 45 square miles along the border of Sonoma and Lake
Counties. Calpine owns and operates 14 power plants at the Geysers with
a net operating capacity of approximately 725 megawatts.
Calpine Corporation is America’s largest generator of electricity from
natural gas and geothermal resources. Our fleet of 83 power plants in
operation or under construction represents nearly 27,000 megawatts of
generation capacity. Serving customers in 18 states and Canada, we
specialize in developing, constructing, owning and operating natural
gas-fired and renewable geothermal power plants that use advanced
technologies to generate power in a low-carbon and environmentally
responsible manner. Our clean, efficient, modern and flexible fleet is
uniquely positioned to benefit from the secular trends affecting our
industry, including the abundant and affordable supply of clean natural
gas, stricter environmental regulation, aging power generation
infrastructure and the increasing need for dispatchable power plants to
successfully integrate intermittent renewables into the grid. We focus
on competitive wholesale power markets and advocate for market-driven
solutions that result in nondiscriminatory forward price signals for
investors. Please visit www.calpine.com
to learn more about why Calpine is a generation ahead – today.
In addition to historical information, this release contains
forward-looking statements within the meaning of the Private Securities
Litigation Reform Act of 1995, Section 27A of the Securities Act of
1933, as amended, and Section 21E of the Securities Exchange Act of
1934, as amended. Words such as “believe,” “intend,” “expect,”
“anticipate,” “plan,” “may,” “will,” “should,” “estimate,” “potential,”
“project” and similar expressions identify forward-looking statements.
Such statements include, among others, those concerning expected
financial performance and strategic and operational plans, as well as
assumptions, expectations, predictions, intentions or beliefs about
future events. You are cautioned that any such forward-looking
statements are not guarantees of future performance and that a number of
risks and uncertainties could cause actual results to differ materially
from those anticipated in the forward-looking statements. Please see the
risks identified in this release or in Calpine’s reports and
registration statements filed with the Securities and Exchange
Commission, including, without limitation, the risk factors identified
in its Annual Report on Form 10-K for the year ended Dec. 31, 2014.
These filings are available by visiting the Securities and Exchange
Commission’s website at www.sec.gov
or Calpine’s website at www.calpine.com.
Given the risks and uncertainties surrounding forward-looking
statements, you should not place undue reliance on these statements.
Many of these factors are beyond our ability to control or predict. Our
forward-looking statements speak only as of the date of this release.
Actual results or developments may differ materially from the
expectations expressed or implied in the forward-looking statements,
and, other than as required by law, Calpine undertakes no obligation to
update any such statements, whether as a result of new information,
future events, or otherwise.
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