Acquisition benefits customers, utility's renewable energy efforts
DENVER--(BUSINESS WIRE)--
Xcel Energy and Calpine Corporation today announced that Public Service
Company of Colorado (PSCo), an Xcel Energy company, will purchase two of
Calpine's power plants near Denver. The plants currently provide
electricity to the utility under power purchase agreements.
The $739 million acquisition stems from an offer by Calpine into a
competitive bid process that was part of Xcel Energy's 2007 Colorado
Resource Plan, and was the least cost option among many bids for needed
generating resources. The agreement is dependent on regulatory agency
approval.
The plants to be purchased are the 621-megawatt Rocky Mountain Energy
Center, located near Hudson, Colo., which began commercial operation in
2004 and produces electricity using efficient combined-cycle technology,
and the 310-megawatt simple-cycle Blue Spruce Energy Center, located in
Aurora, Colo., which began operation in 2003. The plants can
collectively provide enough electricity to meet the needs of
approximately 700,000 Colorado households.
"This agreement will be good for our customers because these assets,
which are already an integral part of our system, will continue to
provide reliable and reasonably priced energy for many years," said
David Eves, president and CEO of Public Service Company of Colorado, an
Xcel Energy company. "Knowing that these plants will be part of our
long-term generation mix will also help us to more effectively manage
system reliability as we strive to meet the state's newly increased
renewable energy standard."
Thad Hill, Calpine's chief commercial officer, added, "We have been
pleased to provide PSCo with clean, efficient and reliable energy
solutions for Colorado ratepayers since 2003. We are confident that the
931 megawatts of capacity developed and operated by Calpine will
continue to serve Colorado's energy needs for the foreseeable future. We
appreciate the hard work and dedication of the energy professionals who
operated these facilities during our ownership."
Xcel Energy (NYSE: XEL) is a major U.S. electricity and natural gas
company that provides a comprehensive portfolio of energy-related
products and services to 3.4 million electricity customers and 1.9
million natural gas customers through its regulated operating companies
in eight Western and Midwestern states. Company headquarters are located
in Minneapolis. More information is available at xcelenergy.com.
Founded in 1984, Calpine Corporation (NYSE: CPN) is a major U.S. power
company, currently capable of delivering nearly 25,000 megawatts of
clean, cost-effective, reliable and fuel-efficient power to customers
and communities in 16 states in the United States and Canada. Calpine
Corporation is committed to helping meet the needs of an economy that
demands more and cleaner sources of electricity. Calpine owns, leases
and operates low-carbon, natural gas-fired and renewable geothermal
power plants. Using advanced technologies, Calpine generates power in a
reliable and environmentally responsible manner for the customers and
communities it serves. More information is available at www.calpine.com.
This news release includes forward-looking statements that are
subject to certain risks, uncertainties and assumptions. Such
forward-looking statements are intended to be identified in this
document by the words "will," "can," "anticipate," "expect," "potential"
and similar expressions, and include, among others, those concerning
expected strategic and operational plans, as well as assumptions,
expectation, intentions or beliefs about future events. Actual
results may vary materially and Xcel Energy and PSCo undertake no
obligation to update such statements. Factors that could cause actual
results to differ materially include, but are not limited to, those risk
factors listed from time to time by Xcel Energy and PSCo in reports
filed with the Securities and Exchange Commission (SEC), including Risk
Factors in Item 1A and Exhibit 99.01 of each of Xcel Energy's and PSCo's
Annual Report on Form 10-K for the year ended Dec. 31, 2009.
In addition to historical information, this release contains
forward-looking statements within the meaning of 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" 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, 2009. These filings are available by visiting the
Securities and Exchange Commission's Web site at www.sec.gov
or Calpine's Web site at www.calpine.com.
Actual results or developments may differ materially from the
expectations expressed or implied in the forward-looking statements, and
Calpine undertakes no obligation to update any such statements.
Source: Xcel Energy
Contact: Xcel Energy Media Relations, 303-294-2300
www.xcelenergy.com
or
Calpine Corporation
Norma F. Dunn, 713-830-8883
norma.dunn@calpine.com