Reply #10: Calpine's Woes May Hit Ratepayers

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http://www.latimes.com/business/la-fi-calpine22dec22,0,6604193.story?coll=la-home-business

SACRAMENTO — The bankruptcy filing by the state's largest independent electricity generator, Calpine Corp., could lead to higher monthly bills for many ratepayers but is unlikely to result in blackouts next summer, energy regulators and analysts said Wednesday.

As the San Jose-based company seeks protection from creditors and considers selling assets, it is unlikely to shut down the bulk of its 41 generating plants in California, which contribute a steady flow of about 3,000 to 5,000 megawatts of electricity to the state grid, analysts said.

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A Lockyer spokesman said Wednesday that he "intends to fight hard to preserve" contracts so that customers are protected from the higher costs that would arise if the state had to buy power on the spot market.

In its Chapter 11 filing in U.S. Bankruptcy Court in New York, Calpine said it sought to renegotiate certain contracts.

In particular, the company has said it is eager to unload or renegotiate a now unprofitable contract it signed with the water resources agency in 2001, when natural gas prices were less than half current levels. The deal provides 1,000 megawatts around the clock to Pacific Gas & Electric Co., or enough electricity for 650,000 typical homes in its service area.

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