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Calpine boosts revenues, moves forward on Geysers expansion
Published: Friday, February 10, 2012 at 11:39 a.m.
Last Modified: Friday, February 10, 2012 at 11:39 a.m.
Calpine Corp., which operates the world’s largest geothermal energy complex at The Geysers in Sonoma County, reported Friday that annual revenues grew nearly 4 percent last year to $6.8 billion.
The Houston-based energy company lost $190 million in 2011, due largely to increased maintenance costs, lower profit margin and reduction in tax benefits.
Calpine said it’s moving ahead with plans for two new power plants at The Geysers, which would produce nearly 100 megawatts of electricity. The company is arranging financing, setting up sales contracts and getting additional permits for the $700 million project, it said.
“We are actively marketing the potential expansion at The Geysers,” Calpine CEO Jack Fusco told Wall Street analysts Friday.
The independent power wholesaler currently sells electricity from The Geysers to utility companies including Pacific Gas & Electric, Southern California Edison and San Diego Gas & Electric.
Calpine officials said the geothermal expansion project is important because California has a goal of producing 33 percent of its power from renewable sources by 2020. The company now produces more than 20 percent of the state’s renewable energy supply.
Calpine has more than 300 employees at The Geysers, where it operates 15 geothermal plants generating about 725 megawatts.
Calpine last year received Sonoma County’s approval for two new power plants on Coldwater Creek Road and Squaw Creek Road northeast of Geyserville. They’d be the first new generating units built at The Geysers in 22 years.
The first one could open in 2014. The project also includes steam wells, pipelines, roads, electric transmission lines, towers and other facilities.
On Friday, Calpine reported adjusted income of $1.7 billion last year and forecast adjusted income of $1.6 to $1.7 billion for 2012.
Company shares closed Friday at $16.07 on the New York Stock Exchange, up 4.4 percent after Calpine’s results came in above analyst estimates.
Calpine lost $13 million, or 3 cents per share, for the fourth quarter on sales of $1.46 billion, narrowing its loss from one year ago. The company lost $24 million, or 5 cents per share, on $1.47 billion in last year’s fourth quarter.
Calpine has 93 power plants in the U.S. and Canada with 28,000 megawatts of capacity. Most of them are fueled by natural gas.
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