Also gave information on this one a LONG time ago.
Posted on 08/02/2005 1:30:34 PM PDT by MeneMeneTekelUpharsin
NEW YORK, Aug 2 (Reuters) - Calpine Corp. (CPN.N: Quote, Profile, Research) said on Tuesday it will start construction with the energy unit of General Electric Co. (GE.N: Quote, Profile, Research) this month on a gas turbine combined-cycle power plant in Riverside County, California, to help boost power supplies in the energy-deficient region. The 800-megawatt, natural gas-fired power plant got its license from the California Energy Commission in June, and GE later acquired the site and related development rights for the project from Calpine, a company statement said.
companies expect to bring the Inland Empire Energy Center on-line by the summer of 2008 -- in time to help offset state-forecasted energy shortfalls in Southern California. Calpine said it will buy the plant and become sole owner and operator after an extended period of GE ownership. he companies have agreed that GE will finance, own and operate the energy center, while Calpine will manage plant construction, market its output and manage its fuel needs under a long-term marketing deal with GE. After Calpine takes over ownership, GE will continue to provide critical maintenance services under a long-term agreement, the statement said.
The plant will use the industry's most fuel-efficient, gas turbine combined-cycle technology -- the "H System" -- and will be the first capable of achieving 60 percent thermal efficiency, it added. The Inland Empire Energy Center is expected to generate enough electricity to supply nearly 600,000 households and reduce future carbon dioxide emissions by more than 146,000 tons per year, compared with a typical gas turbine combined-cycle plant. On the New York Stock Exchange, shares of San Jose-based Calpine were up 4.3 percent at $3.68 and GE rose 0.6 percent to $34.47.
Calpine probably needed the financial backing of GE for the up coming loans and to get any construction contractors to even consider a contract with them.
Ha ha ha ha ha. Too funny. Some of you just will NOT see the writing on the wall. It's okay. I'm fine with it. Keep watching. Oh, and Dynegy (DYN) is also about to show some action. Aw, skip it.
Another stupid nat gas power plant. Gas blows by $8/MM BTUs and this thing is going to do 800 megawatts ?
What I'm wondering about is the economic sense of creating a natural gas fired plant, even if it is amazingly efficient and low in emissions.
Natural gas has been going up in cost dramaticly every year, and then add in the seasonal increases. This is going to generate some very expensive electricity.
I'm sort of reminded of Enron building that NG fired power plant in India, where India was forced to buy the NG from Enron, since while India is rich in coal, they've got no real NG resources. I'm not claiming this is a deal like Enron, it's just that it doesn't seem to make a whole lot of economic sense.
Mark
And I appreciate your reasoning. Obviously, both GE and Calpine have excellent research staffs and Enron has already happened. I am confident they are making some reasonable decisions and we are pretty dependent on electricity.
Apparently Calpine believes the gas will be there at a doable rate. Nuclear would be even better, but the liberals are not going to allow that, are they?
I have no idea what you are pushing and could care less.
I do know that a lot of major heavy duty contracting companies will not do business with Calpine unless they are paid ahead of time. If that is something to laugh at, then you have some serious problems.
Calpine is going to be okay. And, if you don't care, why did you respond...twice?
On the other side of the Rocky Mountains is a 500 year supply of coal at less than $2 MM.
There are only two fuels that can be easily delivered and consumed cleanly in homes: natural gas and electricity. Gas is increasingly scarce and to burn it to make electricity makes little sense. Lots of gas fired generators have been built lately because the enviro whackos like the nice clean fuel and it has driven the price from around $2 per mmbtu (million British Thermal Units) about 3 years ago to over $7 now.
Coal is a stink nasty mess when it is burned in homes for heat but it can be burned quite cleanly in a modern power generating facility equipped with scrubbers and other technology. And then nice clean electricity can be transmitted to homes and all the saved natural gas is also available for homes. We have lots of coal.
Mark
Being an investor in this sector, I know the information you posted and wholeheartedly agree with it. However, reasonable people like yourself and others are NOT in charge. Coal is the first choice on the way to produce electricity, BUT the liberals will not hear of it. Also, nuclear is fantastic, but they hate that too. If those of us with reasonable minds could get control, a lot of things could be changed for the better. When?
Common sense and California....never the twain shall meet.
My main point is I've tried to give some good information on both companies and have been largely ignored. Let's just say my response is less than tepid. When I tell people something, I expect for them to listen and/or at least present substantiation for disagreement. Over the next few days, more than likely my premise about Calpine is going to be found to be true whether people like it or not.
In many instances, you're quite correct. However, EVERYONE in California is not demented. It's not fair to lump everyone into the same category unless everyone happens to fit that category.
All you have to do is see that statement saying that the plant will be online 2008 to know that it isn't a nuke. Combustion turbines come on site as a number of modules to set on the foundations. After that, you run the piping and wiring and fire them up.
You don't need the containment structure or a fuel pool or the high security of a nuke plant. Natural gas is expensive only because oil prices are up. When they go down so will natural gas prices.
What is your problem. You post this thread and then jump on anyone who raises a legitimate issue or question.
I live in California, and I have concerns when threads like this are posted as the second coming. A lot of people lost their shirts and sometimes their BVDs on Calpine a few years ago. A lot of construction companies lost a lot or went out business when Calpine couldn't pay its bills.
In fact a few freepers lost money investing in Calpine during our dark days.
I believe that I'm going to find a coal furnace to heat my house, as natural gas isn't going to get cheap again in a long time, if ever.
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