SAN JOSE, Calif., July 22 /PRNewswire-FirstCall/ -- As part of its
strategic initiative to reduce operating expenses and improve power plant
performance, Calpine Corporation (NYSE: CPN) announced today that it has
reached an agreement with Siemens Westinghouse (Siemens) to restructure its
long-term relationship. The restructuring will cover Calpine's fleet of
Siemens F- and G-class gas turbines and eight Siemens steam turbines,
representing more than 12,000 megawatts of capacity. Calpine is one of the
largest operators of Siemens turbines, with 42 Frame F and two Frame G gas
turbines in operation today.
The restructuring includes a five-year arrangement to purchase Siemens
parts and services, provides greater operating and turbine maintenance
flexibility, and enhances Calpine's position as a cost-competitive power
producer. It also resolves outstanding issues between the companies, and
offers extended warranties for Calpine turbines in construction and in
storage.
Working with Siemens, Calpine expects to retrofit its Siemens turbine
fleet over the next 18 months to further maximize the availability of its
power plant fleet.
This restructuring arrangement is an integral part of Calpine's strategic
program to optimize its power plant portfolio. As announced this May, the
company has set in motion a program to lower its cost of production and
improve plant productivity. Under this new services structure, Calpine
benefits from having access to Siemens' services and parts capabilities on a
company-wide scale. Calpine also intends to restructure its remaining
long-term services agreements with Siemens for added operating and maintenance
flexibility. The company is currently evaluating its remaining agreements and
expects to complete this process by the end of 2005.
"Today's announcement marks the beginning of a new and stronger
relationship with Siemens," said Tom Mason, president of Calpine Power
Company. "About half of Calpine's plants are powered by Siemens' units. With
their continued support, Calpine will benefit from greater optionality to
enhance its operations and maintenance capabilities and improve plant
reliability in today's competitive power market."
A major power company, Calpine Corporation supplies customers and
communities with electricity from clean, efficient, natural gas-fired and
geothermal power plants. Calpine owns, leases and operates integrated systems
of plants in 21 U.S. states, three Canadian provinces and in the United
Kingdom. Its customized products and services include wholesale and retail
electricity, natural gas, gas turbine components and services, energy
management, and a wide range of power plant engineering, construction and
operations services. Calpine was founded in 1984. It is included in the S&P
500 Index and is publicly traded on the New York Stock Exchange under the
symbol CPN. For more information, visit http://www.calpine.com
This news release discusses certain matters that may be considered
"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, including statements regarding the intent, belief or
current expectations of Calpine Corporation ("the Company") and its
management. Prospective investors are cautioned that any such forward-looking
statements are not guarantees of future performance and involve a number of
risks and uncertainties that could materially affect actual results such as,
but not limited to, risks identified from time-to-time in the Company's
reports and registration statements filed with the SEC, including the risk
factors identified in its Annual Report on Form 10-K for the year ended
December 31, 2004, and Quarterly Report on Form 10-Q for the quarter March 31,
2005, which can be found on the Company's website at http://www.calpine.com. All
information set forth in this news release is as of today's date, and the
Company undertakes no duty to update this information.
SOURCE Calpine Corporation
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Related links:
http://www.calpine.com
CONTACT:
media, Katherine Potter, +1-408-995-5115,
ext. 1168, or investors, Rick Barraza, 408-995-5115, ext. 1125,
both of Calpine Corporation
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