Calpine

Large energy company in the U.S.

For the town in California, see Calpine, California.

Calpine Corporation

Company type| Private
Industry| Energy
Founded| 1984; 41 years ago (1984)
Founder| Peter Cartwright
Headquarters|

Calpine Center
Houston, Texas

U.S.

Key people

* Andrew Novotny (CEO)
* Thad Miller (CFO)

Revenue|  US$10.072 billion (2019)[1]

Net income

|  US$770 million (2019)[1]
Total assets| US$16.062 billion (2018)[1]

Number of employees

| 2,256 (2019)[1]
Website| www.calpine.com

Calpine is a Fortune 500 company based in Houston, Texas.[1] It is the largest generator of electricity from natural gas and geothermal energy in the United States,[2] with operations in competitive power markets.

## Operations

[edit]

Through wholesale power operations and its retail businesses, Calpine serves customers in 24 states, Canada, and Mexico.[3][4]

Its fleet of 80 power plants in operation or under construction has nearly 26,035 megawatts of generation capacity.[4][5]

In 2019, it reported generating 100.8 million megawatt hours of electricity.[5]

Calpine is the largest generator of electricity from natural gas and geothermal resources in the United States.[6][7]

In addition to its retail business, Calpine is a merchant power plant operator that sells power to utilities at market rates.[8]

### Subsidiaries

[edit]

#### Champion Energy

[edit]

Champion Energy is a subsidiary of Calpine. It is a retail electricity provider based in Houston, Texas. Champion Energy currently serves residential, governmental, commercial and industrial customers in deregulated electric energy markets in Texas, Illinois, Ohio, Pennsylvania, New Jersey and New York; governmental, commercial and industrial customers in Delaware, Maryland and Washington, D.C.; and natural gas customers in Illinois.[9][10]

### Fleet

[edit]

#### York Energy Center

[edit]

York Energy Center is a 565-megawatt natural gas-fired power plant located in Peach Bottom Township,  York County, Pennsylvania.

#### Metcalf Energy Center

[edit]

The Metcalf Energy Center is a 605-megawatt combined cycle power plant located in Silicon Valley, in unincorporated Coyote Valley, south of San Jose, California and north of Morgan Hill, California. The plant is powered by natural gas. Some of the power generated by the plant is sent to far away places via Path 15, a major electrical power transmission corridor that is connected to the power plant.

#### The Geysers

[edit]

The Geysers is the world's largest geothermal field, containing a complex of 15 geothermal power plants, drawing steam from more than 350 wells, located in the Mayacamas Mountains approximately 72 miles (116 km) north of San Francisco, California. Geysers produced about 20% of California's renewable energy in 2019.[11]

Calpine owns 13 of the 15 geothermal plants at The Geysers. This group of 15 power plants is the largest producer of renewable geothermal power in North America, producing 725 megawatts of electricity, enough to power 725,000 homes or a city the size of San Francisco.[12][13]

Despite the name of the steam field no natural geysers exist in or near The Geysers - Clear Lake area.[14]

#### Los Medanos Energy Center

[edit]

The Los Medanos Energy Center is a 561-megawatt natural gas fired co-generation power plant located in Pittsburg, California.

#### Edgemoor Power Generating Station

[edit]

Edgemoor Power Generating Station in Wilmington, Delaware was acquired via the purchase of Connectiv from PEPCO in July 2010.

#### Russell City Energy Center

[edit]

The Russell City Energy Center is a 619-megawatt natural gas-fired power station, which began operating in August 2013. It is located in Hayward, California.[15]

The Russell City Energy Center is the nation’s first power plant to receive a federal air permit that includes a voluntary limit on greenhouse gas emissions.[16]

## History

[edit]

### 1984–1999

[edit]

In 1984, Calpine was founded in Silicon Valley, California.[17] Peter Cartwright and four of his co-workers, the Guy F. Atkinson Construction Company of South San Francisco, and the Electrowatt Corporation struck an investment arrangement. With initial capital of US$1 million, it was essentially a Silicon Valley startup company. In 1988, the first QF cogeneration plant was commissioned and power production began.[17]

The name "Calpine" is derived from the company's original California location and alpine, a reference to the Zürich home base of Electrowatt. Electrowatt provided essential assistance when Calpine was a startup.[6]

In 1988, the first QF cogeneration plant was commissioned and power production began. In 1992, the company's assets reached US$21 billion. In 1994, the company reached capacity output of 141 MegaWatts. In 1996, the company's initial public offering was the largest for an independent energy company.[17]

The Sonoma Calpine 3 geothermal power plant at The Geysers field in the Mayacamas Mountains of Sonoma County, California.

In 1999, Calpine bought PG&E's holdings at The Geysers, acquiring most of the geothermal complex. The Houston-based company operates 15 plants and produces about 725 megawatts.[18]

### 2000–2020

[edit]

In 2001, the California electric energy crisis occurred. In 2004, the investment bank Lehman Brothers begins shorting Calpine, with researcher Christine Daley lacking confidence in Calpine. This information spreads to clients of Lehman. By the time Calpine goes bankrupt in 2005, Lehman will profit roughly $100,000,000 from the short.[19] In November 2005, CEO Peter Cartwright and CFO Bob Kelly resigned.[20]

In 2004, Calpine purchased the Brazos Valley Power Plant in Texas for $175 million. At the time of sale, the natural gas combined cycle plant had a capacity of 570 megawatts.[21]

In 2005, the founder and CEO of Calpine, Peter Cartwright, resigned amid severe financial problems for the company. Kenneth T. Derr was named acting CEO. Derr was a retired Chevron executive.[8]

On January 31, 2008, Calpine emerged from bankruptcy protection. The company's previous stock was exchanged for warrants and new Calpine stock began trading on the NYSE under the ticker symbol "CPN."[22] Later that year, a new management team, headed by president and CEO Jack Fusco, joined the company.[23]

In 2010, Calpine bought the Conectiv Energy power plant fleet from Pepco for $1.65 billion. The deal included 18 operating plants and one plant that was under construction. The Conectiv acquisition provided access to markets in the Northeast.[24]

In 2016, Calpine acquired Noble American Energy Solutions from Noble Group. Calpine paid roughly $800 million with an additional amount of roughly $100 million in net working capital paid at closing. The acquisition was funded with cash-on-hand and a one-year loan of about $550 million. The name of this business unit was changed to Calpine Energy Solutions.[25]

In 2018, Calpine was acquired by an affiliate of Energy Capital Partners and a consortium of other investors including Access Industries and the Canada Pension Investment Board. A new board was appointed shortly after the acquisition. As Calpine became a private company its stock stopped trading prior to the opening of the New York Stock Exchange on March 9, 2018.[7]

In 2019, Calpine sold its RockGen plant in Wisconsin to Starwood Energy.[26]

### 2021–present

[edit]

In February 2023, Calpine released plans to begin development for a 425 MW natural gas-fired plant next to the Freestone Energy Center in Freestone County, Texas.[27]

In July 2023, Calpine announced a $25 million carbon capture technology project. The technology could capture 95% of a plant’s carbon emissions, which would reduce greenhouse emissions.[28] The technology was created by ION Clean Energy of Colorado.[29]

In January 2025, Constellation Energy agreed to acquire Calpine for $16.4 billion ($26.6bn including debt) in a cash-and-stock deal.[30]

In April 2025, ExxonMobil announced that it had reached an agreement with Calpine to carry away and store up to 2 million metric tons of carbon dioxide per year from Calpine's Baytown Energy Center near Houston. This agreement is part of a larger carbon capture and storage project at this site.[31]

## References

[edit]

1. ^ a b c d e "Calpine". Fortune. Retrieved 2021-09-18.
2. ^ Don Weinland in Hong Kong and David Sheppard and Neil Hume in London (2016-10-10). "Noble Group sells US energy business in turnround drive". Archived from the original on 2022-12-11. Retrieved 2017-01-04. "Calpine Corporation is the largest generator of electricity from natural gas and geothermal in the US."
3. ^ Sixel, L. M. (2019-06-13). "Calpine reverses losses after going private". Houston Chronicle. Retrieved 2023-03-07.
4. ^ a b Urie, Daniel (2019-06-25). "Calpine Corporation dedicates new power plant". pennlive. Retrieved 2023-03-15.
5. ^ a b Sixel, L. M. (2020-07-24). "No 1. private company: A great year for Calpine". Houston Chronicle. Retrieved 2023-03-02.
6. ^ a b Hastings, Rachel (September 28, 2021). "How CEO Thad Hill T'95 Brings Tuck's Culture to Calpine". www.tuck.dartmouth.edu. Retrieved 2023-03-07.
7. ^ a b Richter, Alexander (9 March 2018). "Calpine acquisition by Energy Capital Partners and consortium finalized". Think Geoenergy. Retrieved 9 April 2025.
8. ^ a b Staff (9 April 2005). "Calpine's Founder, CEO Departs; Court Ruling, New Financial Strategy Loom". Natural Gas Intelligence. Retrieved 9 April 2025.
9. ^ "Champion Energy Expands Footprint to Seventh State". Energy Choice Matters. 4 October 2012. Retrieved 22 October 2012.
10. ^ "Calpine Closes on Acquisition of Champion Energy". 1 October 2015. Retrieved 5 October 2015.
11. ^ McCarthy, Will (2020-02-06). "The pros and cons of enhanced geothermal energy systems". Yale Climate Connections. Retrieved 2020-02-17.
12. ^ "The Geysers Geothermal Field, California". Power Technology. Retrieved 2023-03-15.
13. ^ "Pasadena Water and Power to Ask Council Committee to OK 10-Year Geothermal Deal Worth $188 Million – Pasadena Now". www.pasadenanow.com. Retrieved 2023-03-15.
14. ^ "The Geysers Geothermal Field | U.S. Geological Survey". www.usgs.gov. Retrieved 2023-03-15.
15. ^ Russell City Energy Center Amendment Proceeding. Energy.ca.gov. Retrieved on December 25, 2010.
16. ^ "Russell City Energy Center". Russell City Energy Center. Calpine Corporation. Archived from the original on June 10, 2016. Retrieved April 18, 2017.
17. ^ a b c Willrich, Mason (2017-11-10). Modernizing America's Electricity Infrastructure. MIT Press. ISBN 978-0-262-34241-4.
18. ^ Hart, Steve (3 October 2010). "Small power plant evolves into world's largest geothermal energy complex, with times of boom and bust along the way". The Press Democrat. Retrieved 9 April 2025.
19. ^ A Colossal Failure of Common Sense, Lawrence G McDonald, Patrick Robinson, Crown (Random House), 2009, p99-p105, 154
20. ^ Journal, Rebecca SmithStaff Reporter of The Wall Street (2005-11-30). "Calpine Leaders Quit, Fueling Talk Of a Bankruptcy". Wall Street Journal. ISSN 0099-9660. Retrieved 2023-10-12.
21. ^ Staff (31 March 2004). "Calpine Completes Purchase of Texas Power Plant". CSRwire. Retrieved 28 April 2025.
22. ^ Archives, L. A. Times (2008-02-02). "Calpine exits bankruptcy; trading to restart". Los Angeles Times. Retrieved 2023-06-28.
23. ^ Directors, Clarion Energy Content (2008-09-01). "Calpine's New CEO Jack Fusco: Ready for the Future". POWERGRID International. Retrieved 2023-10-12.
24. ^ Staff (26 April 2010). "Calpine Buys 4,490 MW Conectiv Fleet". Natural Gas Intelligence.
25. ^ Schott, Paul (10 October 2016). "Calpine to buy Noble Americas Energy Solutions in $800 million deal". Stamford Advocate. Retrieved 9 April 2025.
26. ^ Walton, Robert (15 April 2019). "Calpine sells 2 gas-fired plants to Starwood Energy". Utility Dive.
27. ^ Clark, Kevin (2023-02-16). "Calpine to add peaking capacity near existing combined-cycle plant". Power Engineering. Retrieved 2023-04-05.
28. ^ "California Shows Off New $25 Million Carbon Capture Technology Project". Bloomberg.com. 2023-07-14. Retrieved 2023-11-13.
29. ^ "First-of-its kind East Bay pilot project to capture harmful emissions could be game-changer for gas-powered plants". The Mercury News. 2023-07-15. Retrieved 2023-11-13.
30. ^ Hiller, Jennifer (January 10, 2024). "Constellation Energy Agrees to Buy Calpine for $16.4 Billion". The Wall Street Journal.
31. ^ Staff (23 April 2025). "ExxonMobil, Calpine sign CCS agreement for power generation project". World Oil. Retrieved 28 April 2025.

## See also

[edit]

* Editors, World-Generation. Peter Cartwright. Retrieved February 10, 2006.
* Peters, Sara (2002). Calpine CEO shares wisdom, insight. Retrieved February 10, 2006.
* Schlager, Neil (2006). Peter Cartwright, 1930-. Retrieved February 10, 2006.