Calpine Corp. Files for Bankruptcy, End of Wholesales Power Ambitions

As the largest owner of natural gas-fired power plants in the US, Calpine Corp. has filed for Chapter 11 bankruptcy protection, effectively ending its major ambitions to expand in Florida and other states. The San Jose-based company is the latest in a string of independent power producers to go bankrupt, contributing to a frenzy of power-plant construction during the past decade that resulted in a glut of generation capacity and pushed down wholesale electricity prices. Calpine will continue normal operations at its 92 power plants in Canada, Mexico, and 21 states, including Florida, where it is one of the state's largest power producers not affiliated with a utility.

Key Takeaways:

• Calpine listed $26.6 billion in assets, making it the eighth-largest bankruptcy in US history.
• The company operates four power plants in Florida, including the 530-megawatt Osprey Energy Center in Auburndale.
• Calpine has 173 employees in Florida and about 3,300 companywide.
• The company sells wholesale electricity in Florida to large utilities, including Progress Energy Florida and Tampa Electric.
• Calpine is saddled with debts of about $22.5 billion.
• The company has arranged for $2 billion of secured financing from Deutsche Bank AG and Credit Suisse First Boston to operate during its reorganization.

Statistics:

• Calpine has 173 employees in Florida and about 3,300 companywide.
• The company operates 92 power plants in Canada, Mexico, and 21 states.
• Calpine has listed $26.6 billion in assets, making it the eighth-largest bankruptcy in US history.
• The company is saddled with debts of about $22.5 billion.
• The company has arranged for $2 billion of secured financing from Deutsche Bank AG and Credit Suisse First Boston.

Sources:

• Troubled Calpine Corp.
• US Bankruptcy Court in New York
• Times wires
• Progress Energy Florida
• Tampa Electric
• Deutsche Bank AG
• Credit Suisse First Boston