In its first major power sale from its still unfinished merchantenergy plant in Arizona, Calpine Corp. has entered into a five-yearpower sales agreement with the Imperial Irrigation District todeliver 150 MW of electricity from its South Point Energy Center tothe district’s Southern California customers beginning in May 2002.

The 526 MW South Point Energy Center, located on theCalifornia/Arizona border on the Fort Mohave Indian Reservationnear Bullhead City, AZ, begins operations next summer, and isalready 80% complete.

The Imperial Irrigation District serves more than 97,000 powercustomers in the Imperial and Coachella valleys, and produces 493MW through its own energy generation plants. The rest of the IIDenergy comes from purchased power and power trades with otheragencies.

“The dynamic energy market we experienced this summer encouragedus to work for a secure resource,” said Frank Barbera, assistantpower department manager for IID.

IID’s public affairs manager Ron Hall said that the problemsexperienced this summer in San Diego “are an indication of what canhappen when trying to purchase power on the open market.” Problemsexperienced throughout California fueled IID’s desire to obtain along-term contract.

“The IID needed to secure additional electricity supplies toreplace a large contract that will end in early 2002,” said BillRoss, Calpine’s manager of market development, who oversaw the IIDnegotiations. He called IID’s decision to obtain a contract now,knowing that the generation facility is not completed, as “astute.”He said that IID’s “California customers will appreciate IID’sforesight in locking in a long-term” energy supply.

In addition to South Point, Calpine expects to have two moreenergy centers on line on the West Coast in 2001, representing1,000 MW of electric generation to the Northern California powermarket. San Jose, CA-based Calpine expects to complete constructionof a 880 MW unit in Northern California in 2002, and has announcedplans to bring an additional 1,200 MW of generation to the northernand southern markets of the state in 2003 and 2004.

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