Calpine Receives Court Approval for Sale of Ownership in Acadia Power Partners, LLC for Approximately $189 Million

    SAN JOSE, Calif., and HOUSTON, Aug. 1 /CNW/ -- Calpine Corporation (OTC:
CPNLQ) announced today that it has received approval from the U.S. Bankruptcy
Court, Southern District of New York for the previously- announced sale of the
company's 50% ownership interest in Acadia Power Partners, LLC, the owner of
the Acadia Energy Center, to Cajun Gas Energy, L.L.C., an affiliate of pooled
investment funds managed by King Street Capital Management, L.L.C., for
approximately $189 million, representing an additional $44 million dollars
over the stalking horse bid. The sale price includes the payment of $85
million in priority distributions due to Acadia Power Holdings, LLC (Cleco) in
accordance with the limited liability company agreement of Acadia Power
Partners. The company expects to close the transaction, pending certain
regulatory approvals, in the third quarter of 2007.
    "The sale of Calpine's interest in Acadia, a non-strategic asset,
represents another significant step in the company's effort to maximize value
for our stakeholders," stated Robert P. May, Calpine Chief Executive Officer.
"We continue to make progress in our efforts to divest of non-core assets and
to emerge from Chapter 11 as a stronger, more competitive power company
operating a fleet of electric power plants that is among the cleanest in the
    Acadia Energy Center is a 1,160-MW natural gas-fired facility located
near Eunice, La., equally owned by Acadia Power Holdings, LLC and Calpine
Acadia Holdings, LLC. Electricity generated by the Acadia Energy Center is
sold into the Southwest Power Pool and the Southeastern Electric Reliability
Council. Cleco originally offered to purchase Calpine's interest in Acadia
Power Partners, LLC for $145 million, and Cleco entered into a settlement and
release agreement whereby Cleco waived certain of its rights under the limited
liability company agreement, including the buy-out right. In accordance with
bidding procedures approved by the Bankruptcy Court, Calpine held an auction
on July 30, 2007 to allow other potential buyers to bid on the asset. At the
conclusion of this auction, Cajun Gas Energy, L.L.C. was selected as the
winning bidder. Proceeds from the sale will be used to reduce Calpine's debt
and enhance liquidity.
    Calpine Corporation is helping meet the needs of an economy that demands
more and cleaner sources of electricity.  Founded in 1984, Calpine is a major
U.S. power company, capable of delivering nearly 24,500 megawatts of clean,
cost-effective, reliable and fuel-efficient electricity to customers and
communities in 18 states in the United States.  The company owns, leases and
operates low-carbon, natural gas-fired and renewable geothermal power plants.
    Using advanced technologies, Calpine generates electricity in a reliable
and environmentally responsible manner for the customers and communities it
serves.  Please visit for more information.
    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 and its subsidiaries ("the
Company") and its management and uses words such as "believe," "intend,"
"expect," "anticipate," "plan," "may," "will" and similar expressions to
identify forward-looking statements.  Such statements include, among others,
those concerning the Company's expected financial performance and strategic
and operational plans, as well as all assumptions, expectations, predictions,
intentions or beliefs about future events.  Readers 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.  Such
risks and uncertainties include, but are not limited to: (i) the risks and
uncertainties associated with the Company's Chapter 11 cases and Companies'
Creditors Arrangement Act proceedings, including impact on operations; (ii)
the Company's ability to attract, retain and motivate key employees and
successfully implement new strategies; (iii) the Company's ability to
successfully reorganize and emerge from Chapter 11; (iv) the Company's ability
to attract and retain customers and counterparties; (v) the Company's ability
to implement its business plan; (vi) financial results that may be volatile
and may not reflect historical trends; (vii) the Company's ability to manage
liquidity needs and comply with financing obligations; (viii) the direct or
indirect effects on the Company's business of its impaired credit including
increased cash collateral requirements; (ix) the expiration or termination of
the Company's power purchase agreements and the related results on revenues; (*)
potential volatility in earnings and requirements for cash collateral
associated with the use of commodity contracts; (xi) price and supply of
natural gas; (xii) risks associated with power project development,
acquisition and construction activities; (xiii) risks associated with the
operation of power plants, including unscheduled outages of operating plants;
(xiv) factors that impact the output of the Company's geothermal resources and
generation facilities, including unusual or unexpected steam field well and
pipeline maintenance and variables associated with the waste water injection
projects that supply added water to the steam reservoir; (xv) quarterly and
seasonal fluctuations of the Company's results; (xvi) competition; (xvii)
risks associated with marketing and selling power from plants in the evolving
energy markets; (xviii) present and possible future claims, litigation and
enforcement actions; (xix) effects of the application of laws or regulations,
including changes in laws or regulations or the interpretation thereof; and
(xx) other risks identified the risk factors identified in its Annual Report
on Form 10-K for the year ended December 31, 2006, and its Quarterly Report on
Form 10-Q for the quarter ended March 31,2007, which can also be found on the
Company's website at All information set forth in this
news release is as of today's date, and the Company undertakes no duty to
update this information.

For further information:

For further information: Media, Mel Scott, +1-713-570-4553,, or Investors, Karen Bunton, +1-408-792-1121,, both of Calpine Corporation Web Site:

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