Calpine Corporation (NYSE: CPN) is pleased to announce today that our
geothermal power generation facilities at The Geysers in Lake and Sonoma
Counties, California, have reopened to all employees after having been
affected by a wildfire earlier this month. The Geysers had been
operating with only essential personnel for the past two weeks due to
the access restrictions imposed by CalFire as they fought to contain the
Valley Fire. The Geysers is now generating about 540 megawatts of power
for our customers.
We are proud to report that all employees and contractors were safely
evacuated when the fire threatened The Geysers and that all our
employees are accounted for. Our focus now turns to assuring the
continuing safety of those who have returned to work and to supporting
employees whose homes and families have been impacted by this
devastating fire. We have implemented multiple employee assistance
programs and have established an employee support fund, seeded with a
$100,000 contribution from Calpine, wherein all donations will be
matched by the company.
We recognize the devastation to the surrounding communities and are
coordinating with local officials and agencies to assist in response and
recovery efforts. As part of our ongoing efforts to support our
neighbors, we have donated $100,000 to area charities, including the
Lake County Search and Rescue Association, the Lake County Rising Valley
Fire Relief Fund and the local chapter of the Red Cross. Calpine
applauds the efforts of the first responders who continue to work hard
to ensure the safety of The Geysers and the surrounding community,
without whom we would not be able to return to the site today.
Regarding specific impacts to our facilities, as was previously
reported, five of our fourteen facilities sustained damage to ancillary
structures such as cooling towers and communication/electric
deliverability infrastructure. The unaffected facilities have continued
to operate to varying degrees throughout this event. As of today, our
facilities are collectively producing approximately three-quarters of
The Geysers’ normal operating capacity, sending approximately 540
megawatts of renewable geothermal energy to the grid. This is a
testament to the dedication and skill of our team at The Geysers.
As to the facilities that were directly affected, a full damages
assessment is still being conducted. Certain repairs are already
underway, and based upon our initial review, we estimate repairs will be
completed over the next 6-12 months. We believe our insurance program
will cover repair and replacement costs as well as our net revenue
losses, after deductibles, which we currently estimate will be
approximately $30-35 million in total, split about evenly between
property damage and lost net revenue. We also expect our delivery
obligations under power sales agreements to be excused without further
supply or cover obligations by reason of force majeure until repairs are
The Valley Fire is now 97% contained according to CalFire, and we
believe there is no active current threat to our facilities at The
Geysers, but it is impossible to rule out changes in conditions that
could lead to a further threat.
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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